You’re learning the ropes of small business ownership - and in your early days as an entrepreneur, mistakes are inevitable. While learning from your mistakes can be valuable, you’ll want to avoid certain missteps. From working with The Imagists to develop your branding design and strategy to getting your payroll system under control, these tips will help you dodge certain pitfalls that commonly plague new business owners.
Disorganized Payroll System
As you get your business off the ground, it’s easy to overlook certain aspects of business operations and financial management, like setting up your payroll system. Ideally, you should use a platform that incorporates all of the payroll tools and services you need for one integrated, streamlined system. For instance, you could choose software that offers functions like automatic payroll scheduling, tax calculating, and filing, such as Quickbooks or Gusto. We use both. Software that enables same-day direct deposit and employee benefits management is also convenient.
Working With Friends
Perhaps you’ve been thinking about asking one of your good friends to be your business partner. It seems like a good idea on the surface - but it’s actually a risky move. Ryan Robinson states that going into a business with a friend can make it difficult to define roles and distribute responsibilities fairly, leading to awkward conversations and potential conflicts. It can be easier to run your first business solo than trying to bring a friend on board as a co-founder.
Choosing the Wrong Business Entity
With several business entities to choose from, it can be difficult to select the right structure for your first company! But registering for the wrong entity can cause you to miss out on tax benefits and additional perks that you might have secured otherwise. In order to pick the right entity, Nationwide Incorporators states that you should consider costs and fees, tax advantages, personal asset protection, the potential to attract new investors, and whether or not you want to offer ownership interests to certain employees.
Lacking Legal Support
Do small businesses really need legal support? Yes! Trying to deal with complex legal issues without consulting a lawyer might seem cheaper in the short term, but hiring a lawyer when necessary is worth the price. You might need a lawyer’s assistance for contract negotiation, establishing copyright protection, or setting up contracts with employees or freelancers. It’s best to start reaching out for legal support early on so that you don’t end up dealing with problems in this area later.
Mediocre Marketing Strategy
You’ve got a great product or service - but you have no idea how to market it. A mediocre marketing strategy can leave an entrepreneur with a fantastic idea struggling to make any sales. You might feel uncomfortable promoting your own business, or you might not know what business branding really entails. That’s why you need pros to help you with brand strategy and design.
With the right team, you can establish a cohesive, aesthetically appealing brand design across multiple platforms and move forward with a branding strategy that will drive sales and help you generate new leads. As you build your brand, new clients will find you more easily, and you’ll be able to communicate what your business is all about through your marketing strategy.
There is a learning curve for every new entrepreneur. But by addressing issues that small business owners often face early on, you can grow as a business owner. With these tips, you’ll be able to move past mistakes that fresh entrepreneurs generally stumble into.
Are you trying to figure out how to brand your business? The Imagists can guide you through everything from brand strategy to design! Sign up for a free live consultation.
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