If you’ve never run a business but you’re determined to get one started so you could be your own boss and make your dreams a reality, you need to be ready to face new challenges. And with those challenges, you may not always know what to do. So, keep reading to learn about a few of the most common mistakes that new business owners make. These are big mistakes that could cost a new business owner a lot of money, so do your best to avoid them.

Overspending at the Beginning

You may think that, just because you have received that small business loan from the bank to get your business off the ground, you could go on a shopping spree and buy all of the most expensive and most modern furniture and equipment that you can find. But this is a mistake that a lot of new small business owners make because they end up spending too much of their startup funds and not leaving enough in savings. Remember, your first year or two in business will be used to recoup costs rather than make a profit, so having as much money in the bank as possible is wise. So rather than buying brand new materials, such as office technology and furniture, use zoomthelist.com to search for great deals from local sellers who are offering used resources that you can take advantage of.

Misusing Credit Cards

Another common mistake that is made by new business owners involves overusing their business credit cards. You may be tempted to put everything on your card and paying it off over time as you work hard on purchasing what you need to get your business off the ground. But overspending and incurring credit card interest fees and late fees will only make it that much harder to keep your company open for the long run. So if you want to give yourself the very best chance at sustaining your business beyond its infancy, you should only charge to your credit card an amount of money that you know you can pay in full once the bill becomes available that month.

Failing When It Comes to Marketing

No one will know about your business’s products and/or services if you do not properly market and promote what you do. But a lot of entrepreneurs are inexperienced when it comes to marketing, so they fall short and end up sending mixed messages to consumers. That results in sales dropping. If you want to do well, hire marketing pros that could help you. Have a clear and consistent message that you can send out in a variety of ways, both online and offline, to your target audience. Make a great first impression and find ways of keeping customers coming back for more.

Keep these big, common mistakes in mind as you start your new business. Don’t make the same errors that so many other business owners have made in the past. Instead, learn from their mistakes so that you can take steps to keep your business open and watch it grow.

 

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.