There is no challenge like that of running a growing company. The fact is that running a business - regardless of the type of business that you choose to launch - is never going to be an easy task.
That’s why being aware of what can derail your business is so vital. Because the truth is that many new business owners are somewhat naive, and don’t realise just how easily their new venture could be derailed.
Hence why taking the time to understand how to prevent damage to your business occurring is so important. Because once a business is damaged, getting it back on track can be a real nightmare.
Below are some of the most common and most potentially damaging mistakes that smaller businesses tend to make, and advice on how you can prevent yourself from making them.
Failing to manage cash flow
If you want your business to stand the test of time, taking cash flow seriously from the start is important. The number one reason why small businesses fail is due to a lack of cash flow, which is what makes managing your business finances effectively from the get-go, even more important.
It’s important to understand the difference between profit and cash flow, and the fact that these two things are very different to each other. It is possible to be earning a good profit from your business but not have enough money to effectively run your business, and thus a cash flow problem. Cash flow is about managing your funds and using them effectively, whereas profit equates to the amount of money that your business is bringing in. The good news is that there are some fantastic tools available for making managing your cash flow easier, it's just a case of taking advantage of these.
Not having adequate IT support
When you work from home, your computer is the hub of your world. It’s the centre of your entire business, which means that when it goes down, or you encounter some other IT problem, it can have a big impact on your profits. That’s why having adequate IT support in place from the get-go is so vital. Don’t see it as an unnecessary cost, see it as a way of ensuring your business can function no matter what.
As a small business owner who works from home, your best bet when it comes to IT support is outsourced IT services - take the time to look into these, and you will see how beneficial an investment it could be. There are some things that you should skimp on, and some that you shouldn’t, and IT support is not one of the things that you should skimp on, especially if your business is computer based.
Running yourself into the ground
Far too many home workers neglect self-care, and because of this, end up running themselves, and their businesses, into the ground. Sure, working hard is a must, as is being motivated and productive, but that doesn’t have to mean leaving yourself exhausted. As a business owner you need to take care of yourself; otherwise your business will suffer because of it.
After spending months planning to start a business, building it up over time, and putting your all into your venture, the last thing you want is for it to derail due to something that is completely preventable.