Running a small business is anything but a walk in the park. Almost anyone can start a business. You can see evidence of this in the 600,000 small businesses that launch in the US every year.
However, keeping a business alive is another story. Only 50% of small businesses make it past year five. Even fewer business owners reach the level of success they dreamed of.
The question is, what business mistakes lead to these kinds of statistics? More importantly, what can you do to avoid them?
We’re here to answer your questions and help you keep your business in the black. Keep reading for a quick guide on what you need to avoid if you want to be a successful small business owner.
Not Monitoring Your Cash Flow
Not paying attention to your revenue and expense reports is one of the worst business mistakes you can make. It’s important to keep a constant eye on your cash flow and document every dollar that comes in and goes out.
First, tracking your cash flow will alert you to any immediate issues. It will help you make budgetary decisions regarding your expenses.
Secondly, watching your cash flow over time will help you identify trends in your productivity, sales, and costs. Based on this information, you can make the necessary adjustments.
Not Working With a CPA to Help You With Taxes
Smart management means recognizing when you’re in over your head. For example, most small business owners don’t have the experience or know-how required to properly file their business taxes.
For example, do you know how much to contribute to your quarterly taxes? Do you know what to do if you receive a certified IRS letter? If not, take a look at the IRS certified letter guide you’ll find through this link.
Not Researching Your Target Market
No matter what type of business you operate, not knowing your target market is one of the worst business mistakes you can make. The more you know about the consumers you want to buy your products or services, the easier it will be to increase your business verticals.
Identifying your target market’s key demographics is step one. This includes factors like age, gender, location, hobbies, and life circumstances. Based on these indicators, you can leverage your products or services in a way that makes them seem invaluable to your market.
Not Knowing How to Market and Advertise
Finally, learning how to effectively market to your target audience is essential to your success. If you don’t know what methods of advertising are appropriate for your target market, you’re going to spend a lot of money with very little ROI to show for it.
Based on the demographics of your audience, should you be using social media marketing, email marketing, paid advertising, radio ads, OTT advertising, etc.? Just as importantly, what kind of marketing message will they be most responsive to?
Do You Want to Avoid Business Mistakes That Could Cost You Your Company?
Clearly, running a business is full of hurdles and potential pitfalls. Follow our guide to avoiding the common business mistakes listed above. And if you do make a mistake, use it as an opportunity to learn and grow as a small business owner.
For more business ownership advice, marketing tips, and financial guidance, check out some of our other articles before you go. Our blog was created to help entrepreneurs like you.
