10 Business Pitfalls to Avoid at All Cost
A successful business is all about evolving to take on greater challenges as your business grows bigger and bigger. But there are some obstacles out there that are more than challenges. They’re pitfalls. And if you’re not careful, a pitfall can be a permanent trap for your business. Here are ten pitfalls to avoid with your business at all costs.
1) Not basing your business on Revenue
This one comes first because it’s the most crucial of the bunch. You have to build a concrete sustainable business model that will definitely generate revenue with 100% confidence. Don’t waste your time on a vague plan and lofty goals, even if the returns could be huge. Always launch a modest business and scale it later.
2) Overestimating Yourself
A little success at first is terrific, but don’t let that success inspire you to take on more than your business can actually handle. Always scale your business up to take on more work, not the other way around.
3) Overplanning
A lengthy business plan is not the key to success. Keep your plan short and simple. Remember, you’re not making any money while you’re planning. You only make money once you start executing your plan.
4) No Contingency Plans
Projection Plans coming up short, outsourcing problems, deliverables getting lost on their way to the clients… let’s face it, all sorts of things can go wrong with your business everyday. But that doesn’t mean you shouldn’t have a set of contingency plans for the most frequent and most critical problems.
5) No Website
If you don’t have a website, you’re losing business to your competitors who have one. Get a website as soon as possible.
6) Overestimating Revenues
When it comes to projecting revenues, it’s easy to overestimate. That’s why you should always think conservatively when making your projections and underestimate. You may find it depressing to think in these terms, but at least your business will still be up and running at the end of the quarter.
7) Bad Business Partners
Not everyone makes a good business partner. Make sure you know everything about the person you wish to partner with, from their political backgrounds to their business ethics. And if you decide to go ahead and bring on a partner, be sure to create an operating agreement that clearly states what happens in every possible outcome.
8) Bad Location
Even in the Internet age, a bad location for a business can still be fatal. If you have a brick & mortar business, always take into consideration the location of your customers, traffic, accessibility, and parking.
9) No Proof of Concept
In this economy, no one is going to lend you money or fund you in any way without proof of concept. You already have to be up and running in the marketplace. If you can’t get your idea for a business off the ground in some way without someone else's resources, get another idea pronto.
10) Launching a Job instead of a Business
Although you'll probably have to be involved in the daily operations of your business at its launch, remember that the ultimate goal is to grow your business beyond the point where it’s more than just your job.
