Many entrepreneurs and small business owners have the best intentions for their companies but end up making a lot of the same mistakes in the long run. Failing to recognize the error of your ways and continually making the same mistakes will result in the failure of your organization, though, so if you find yourself in the position of running your own company, make sure you avoid making the following three big mistakes that many people in your position typically make.
Not Anticipating Losses at the Start
When you first go into business, you should expect that you will actually lose money for at least the first year or two. Many people, though, have high hopes that they will not fall into this category and that they will be leading a superb organization that makes hundreds of thousands, or even millions, of dollars in profits within the first year alone. The truth of the matter is, however, that you will be putting out a lot more money when you start your business than you will be able to get in return from your customers. According to Marcus Lemonis, making sure you have plenty of working capital at the start of your business is imperative. This will ensure you can cover all of your costs and overhead and keep working until profits do start coming in to cover your losses.
Not Treating Employees with Enough Respect
There’s more to keeping employees happy than giving them a great wage and plenty of benefits. They also deserve and expect a high amount of respect and recognition for the work that they do. But sometimes bosses tend to be too concerned with being authority figures that they fail to recognize the needs of their employees. If you’re running your own business but you are far too concerned with profits and efficiency, and you are always yelling at and insulting your employees as a result, they will not be motivated and they will leave when the first opportunity comes along to do so. Therefore, make sure you create an atmosphere within your organization that keeps your employees happy to come to work while still providing them with the salaries and benefits they need to pay their bills.
Not Taking Advantage of the Internet
Some bosses are very old school in their practices and do not recognize the importance of getting themselves online. This is especially true of small businesses that focus on providing products and services to a local client base. The truth is, though, that you can use the Internet no matter what type of business you run. For example, setting your website up so that it is connected to social media pages is one way to connect with a larger audience and increase your brand’s reach. But you can also sell your products online by setting up an online store and the shopping cart you need to receive payments quickly and easily without even having to think about it.