Starting a business is not easy especially when you lack of experience. Even if you are prepared with the knowledge of how to start a business properly, making mistakes in the beginning is still highly possible. Making mistakes in the initial stage of starting a business might be common. However, that doesn’t mean you can follow the same path. If you know what kind of mistakes most newbies do when starting a business, you can learn how to do it better. Thus, you can also prevent yourself from making costly mistakes.
Most common mistakes in starting business
Being newbie in business industry can be challenging. It can be overwhelming as well. Thus, it is sometimes inevitable to make mistakes. However, you can also find out what kind of mistakes you can avoid especially in the initial stages of running your own business. This way, you have more opportunity to run a smoother way. Here are most common mistakes of starting business done by newbies.
Forgot to protect investment and ideas from the beginning
This is very common mistake done by newbie when starting a business. It is easy to get carried away on searching new products name, innovation, and so on. Once you find the on you think is cool and valuable for your business in the long run, you forget to make it legal. It is important to take care of intellectual property law form the beginning. There is a chance that your new product name might have been registered by someone else while you haven’t realized it yet. You can consult to those who have expertise in law or hire a trusted lawyer.
Choose the wrong location for your business
Leasing should not be taken lightly especially when it comes to business. When you look for a place you can turn into your office space, you should choose selectively. Rent cost is not cheap and it can cause a huge dent in your finance. Make sure to calculate everything from the start. You have to know how much space you need, where you want your location to be, etc. Choose a place that will benefit your business. Ideally, it is great to find a place with great flexibility located around your potential customer base.
Forget to make separate account for your business and personal funds
Your business may not get affected greatly in the beginning when you mix business and personal fund altogether. However, it will give you major headache in the future. It can cause major regret because mixing up business and personal funds can put you in tricky situations. That is why it is always right to make separate account to manage business and personal funds. It can prevent from major problems in the future. Not to mention that it is a way to protect your personal account just in case something goes wrong with your business. Your personal account won’t get affected and you still have something to hold onto.