Business Pitfalls to avoid!

Starting your new business is a huge moment, its time to put your passion in action and start turning your skills into profit. Here are the business pitfalls to avoid.

However, there are some nasty pitfalls you will want to avoid along the way, we have complied a list of potential pitfalls that you will certainly want to avoid.

Not having a plan:

Make sure your business has a comprehensive business plan. Your business plan should include market research, clear financial forecasting, details of your marketing channels and benchmarks to put in place to measure your business progress.

Your business plan should be a living and breathing document, once you have written it keep constantly reviewing and updating it, your customer base will change over time, so your business plan should too.

Neglecting your legal obligations:

It won’t be the most interested part of your business, but it will become one of your most important parts and it is really important to make sure you and your business is following its legal obligations.

If you are a self-employed sole trader, you need to make sure you have registered as self employed with the HMRC or if you have formed a limited company you may have to comply with corporation tax and payroll obligations.

Research the competition:

If you want to succeed, then you need to research what your competitors are doing in your local area. Your competitor analysis should be a key priority of your business planning and it will be a constant ongoing task.

Make sure you research what your competitors are selling, who their selling too and how much they are selling their products for.

Try and also look at what your competitors are doing well. What makes their shop or brand stand out.

Then look at areas of your business where you could offer a niche area of service or offer something that is unique. Ask yourself why will the customer choose me over them.

Business Pitfalls with Branding:

Your small business branding is a very important factor to get correct when starting your new business. Your brand will encompass much more than your business name and logo. The tone of your communication with customers, the customer journey and experience and even how you treat and train your staff will all be judged.

Business Pitfalls with Your pricing strategy:

When setting a pricing strategy for your new business it sometimes can be very tempting to price yourself far lower than what is being offered by your competitors as a way to secure business over them. However, this strategy may not be the most cost effective for your business and also remember your clients wont only be looking for the most cost-effective prices they will be also looking for a premium customer experience.

You should identify what makes your business unique and stand out from the crowd, what does your business bring to the table your competitors don’t and how is your business adding value. If you or your business is launching a brand-new product or service then your brand should be telling an interesting story of why your product or service is needed.

Purchase the right insurance:

When you start your business, it isn’t about purchasing the cheapest insurance policy possible, you will want to make sure the insurance policy you buy protects you and your business for all outcomes.

The exact insurance you require will depend on the nature of your business but their a few insurance policies that every business owner is likely to need;

Hiring the wrong staff:

As your business grows and expands, you will need to hire staff, as a small business making the correct appointments is critical and you as the business owner will need to carefully consider the roles you are looking to fill.

Carefully consider what skills you are looking for in an employee, what areas of support do you need help in, how much can your business afford to pay and what employment contract are you going to offer.

Do you research on any potential employee, check employment references and ask through questions when interviewing candidates for the role.

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