In this article I will teach some of the pitfalls when getting started in business and how to avoid them.
It is estimated by the Small Business Association that more than half of all businesses fail within the first two years and that almost 90 percent fail within the first five years.
There are some important things to consider when going into business in order to ensure the success of your business.
Watch out for the 5 demons listed below.
1) Don't Quit - Starting a business will require a great deal of work when you get started.
Just because you know how to paint does not mean it will be easy for you to start a painting business.
It takes an iron will, sacrifice, and a drive to continue learning and doing without reward.
Most business owners lose money their first year and break even the second year.
2) Don't Starve Your Business - Make sure you have enough funding to start your business.
Often taking out large loans to start a business can be detrimental to its long-term success.
By keeping personal and business funds separate you make life easier for your accountant and stand a much higher chance of success in your business.
3) Don't Forget Your Priorities - Though a business requires a great deal of focus and dedication, it is critical to remember why you are starting your business in the first place.
Don't let your loved ones, health, or sanity suffer to start your business.
You will need to make sacrifices when you get started, but don't let this hurt the things that matter most to you.
4) Don't Overspend - I explained the importance of having appropriate funding for your business.
It is important to have enough money to cover your costs.
On the other side of the coin, it is important to be wise with your business expenditures.
You will receive a 100 percent return on investment on all of the money you don't spend.
5) Don't "Wing It" - So far we've covered most of the reasons why businesses fail - 1) Lack of Faith, 2) Lack of money 3) Lack of Focus on What's Important and 4) Lack of Control.
The Last Point is Lack of Education.
Know how to run a business and create a solid plan for your business before you open up shop.
Education is the best investment you can make in your business.
It is estimated by the Small Business Association that more than half of all businesses fail within the first two years and that almost 90 percent fail within the first five years.
There are some important things to consider when going into business in order to ensure the success of your business.
Watch out for the 5 demons listed below.
1) Don't Quit - Starting a business will require a great deal of work when you get started.
Just because you know how to paint does not mean it will be easy for you to start a painting business.
It takes an iron will, sacrifice, and a drive to continue learning and doing without reward.
Most business owners lose money their first year and break even the second year.
2) Don't Starve Your Business - Make sure you have enough funding to start your business.
Often taking out large loans to start a business can be detrimental to its long-term success.
By keeping personal and business funds separate you make life easier for your accountant and stand a much higher chance of success in your business.
3) Don't Forget Your Priorities - Though a business requires a great deal of focus and dedication, it is critical to remember why you are starting your business in the first place.
Don't let your loved ones, health, or sanity suffer to start your business.
You will need to make sacrifices when you get started, but don't let this hurt the things that matter most to you.
4) Don't Overspend - I explained the importance of having appropriate funding for your business.
It is important to have enough money to cover your costs.
On the other side of the coin, it is important to be wise with your business expenditures.
You will receive a 100 percent return on investment on all of the money you don't spend.
5) Don't "Wing It" - So far we've covered most of the reasons why businesses fail - 1) Lack of Faith, 2) Lack of money 3) Lack of Focus on What's Important and 4) Lack of Control.
The Last Point is Lack of Education.
Know how to run a business and create a solid plan for your business before you open up shop.
Education is the best investment you can make in your business.