If you are in the process of setting up a brand new business then you may be wondering how to go about that. If you have never owned a business before then you could be worried about many things that could go wrong along the way.
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If you have heard that many businesses fail to make it to their fifth year of trading then you will want to do all you can to keep your company going strong.
Take a look at the article below which explains some of the obstacles you can come across when opening and running a business, so you don't fall into the pitfalls with your new business.
Avoid These Pitfalls With Your New Business
Running Out Of Money
This one can be detrimental for any business. Without money there is no company to run, you won’t be able to pay rent or employees. When you are first starting your business you will need to work out how much funding you need to have.
This should be a list of all the things you need to pay for while you wait for your profits to start coming in. One area of your budget that should take the most money is marketing – this is a good thing as you will see the biggest return from this area.
Lack Of Employees
If you are trying to run a company with very few employees then you could struggle to get everything done. Having a team of hardworking staff means you can run your business effectively and efficiently. However, a high employee churn rate can end your business overnight.
This happens when employees come and go in quick succession. The reason it can end your company is due to you needing to take time away from the business to hire new staff.
The same can happen to your company if you have a high absence rate amongst staff members. You can get on top of this by using an absence management service. They will do all the checks and legwork for you so you can focus on your business.
Not Enough Customers
When you start a business it is a good idea to work out how you are going to gain customers. One thing you can do is know who your target audience is going to be and go from there.
Marketing your business to customers will ensure you always have orders and visits. One problem could be you are located too far away from the main hustle and bustle. This means potential customers aren’t able to find you.
Legal Complications
When you first start your company you need to ensure that you have everything in place legally. For example, you will need public liability insurance if you are working with members of the general public.
If they happen to get injured while on your property then this will cover you if they decide to sue. Be sure to speak to a legal advisor about what you need to open and run a successful business.
Website Failure
Finally, if your website isn’t up to general standards then you won’t get the required amount of customers or orders you need to survive. Many businesses fall into this pitfall as they have slow running websites.
Issues occur as customers and clients don’t want to spend many minutes scrolling a website or waiting for pages to load. When you design your website, be sure to keep it to the bare minimum so it runs quickly and efficiently.
