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10 Business Mistakes for Start-Ups to Avoid

10 Business Mistakes for Start-Ups to Avoid

La'Shon Anthony | SmallBizLink

4. Projecting higher sales, focusing on sales volume, and not enough on the profit margin.
Don’t price yourself extremely lower than competitors to attract business. People often have difficulty determining how to set prices for services. It’s a popular question on numerous forums. Check industry standards. For other factors to consider and different types of pricing models, here is an article from About .com.

5. Spending too much on overhead…facilities and personnel.
Compare leases before selecting a space. Research national and local salaries before deciding on compensation for staff. Compare costs for service providers.

6. Not having a “Plan B.” Always have a contingency plan for unexpected occurrences and an exit strategy.
Nothing ever stays the same, including the economy. Too many business owners lost thousands of dollars because they expanded & spent excessively over the last ten years and didn’t factor in the effects of a possible recession. How will the company survive with fewer customers? What would happen if a partner left, developed a chronic illness or died? What if you or your spouse died? Has a succession plan been written for the business?

7. Hiring friends or relatives rather than people who have the skills required…lack of support.

Depending on friends and family could compromise the company. Remember this is your dream not theirs. Are they committed to work the necessary hours, shifts or overtime? Are you hiring them because they will work for less money to help get you started? Are you spending time training them when you should be working on other projects?