What are some of the biggest pitfalls to look out for when starting your own small business?

Answer 1

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Hi there

Here is an excerpt from an article I wrote on what I wish I had known before I opened my business:

1. Business profitability and self esteem are inextricably linked. When you are feeling low, your profits will also be low. The best way to improve your profits is to work on belief in yourself.
2. It’s OK to say no to work. When you start it is very easy to grab every job that comes past – no matter how much the alarm bells ring. You fall back into automatic wages patterns of saying “yes” when asked to work. One of the most freeing things you can do as a self employed person is to only say yes to people and work you enjoy. If you are not enjoying it … say “no”. When you say no to what you don’t want and yes to what you do want, more work will come to you that better matches who you are and what you like doing.
3. Alliances and friendships are vital to success. Some of your best clients will come from the friendships you have made with no thought of reward. Your business friends will help you on your down days and celebrate your successes with you – take time to build and nurture friendships.
4. Give, give and give some more. If you hide your talents and are miserly with your information and support for clients, you will never be as successful as when you freely share.
5. Learn copywriting & marketing. I can’t highlight this one enough. Unless you can promote yourself and your services, it will not matter how great you are, no one will know you exist.
6. Choose your networking events carefully. I used to be the networking Queen – if there was the opening of a paper bag I was there competing to see how many business cards I could get. Now I have learnt to enjoy a few selected smaller events in more depth – getting to know people and making friends. Costs me a heck of a lot less and with much better results.
7. Value your raving fans. I have clients that have been with me for years … clients who always refer others on to me and always pay on time. They also just happen to be the people I love working with the most. They are gold and I will do anything for them (including pitching in and helping out on their stalls at Trade Shows if they need a hand or sweeping the floor at their place if that is what is needed that day to reduce their stress levels).

My bottom line is to have fun with your business. It will become as all absorbing as a new baby in the household and just as challenging. Look into it … admire the beauty you have created and enjoy its perfection as it grows into something wonderful (Oh, and of course hire in help for the bits you are not good at or don’t enjoy).

Good luck!

Ingrid

Source(s):

http://www.heartharmony.com.au/Articles/WhatIwishIknew.html

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Asker's Comment:

Thank you, I appreciate you taking time to give me such a great answer!

Answer 2

Most businesses are under funded and run out of money before they attract enough customers to be profitable.
Marketing you business should be priority. I have seen many fail because they opened their doors and expected customers to pour in. Sorry, you have to work hard at reaching out and grabbing customers.