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Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

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Three Mistakes New Business Owners Always Make

 

Whenever you’re starting a new business, there are always hiccups. From getting your supply chain nailed down to finding reliable workers and building a strong customer base, every business owner struggles.

 

However, there are some setbacks that every new business owner can avoid with a little planning. 

 

Here are three common blunders that all new business owners make and the solutions to those problems.

 

1- Not Adapting Their Management Structure

Whether you are fresh out of business school or jumping from one established company into your own venture, the biggest mistake you’re bound to make is not having a management structure.

 

Many new entrepreneurs are so concerned about emulating traditional roles of leadership and divisions of duties that they are blind to the best ways to truly divide up the work between their teams.

 

However, each business has unique needs. You’re going to need to personalize the duties of everyone in your company.

 

Perhaps you need more customer service managers instead of accountants, or you need more support for your programming team than expected. When problems like these arise, don’t be afraid to break away from the established patterns of management. It’s better to create extra positions to support your team than to let everyone struggle because “it just isn’t done that way”.

 

Once you’ve implemented a structure and it’s operating, it can be hard to see where to improve while you’re working inside it.

 

That’s why new and established companies should work with consulting firms to get an outside perspective on how to improve their business structures. At A to Z Management, business owners receive consultations about how to improve their management structure overall or solve a specific problem they face.  

 

2- Being Unprepared For Lulls In Sales

Another mistake new entrepreneurs make is not accounting for the cyclical nature of sales. It can be exciting when your business booms at the start, but you won’t know what the slow time of the year is until you have spent two or three years with your company.

 

 If you don’t save enough money to keep your expenses covered during a period of high sales, you will struggle in your off-season. So be sure to put some of your profits aside so that you’ll be ready to keep operating whenever the slow season hits.

 

3- Not Realizing Employee Turnover Is Going To Happen

 

Whenever you hire a new employee, it’s easy to think they’ll be with you forever. But the truth is that a lot of employees end up moving on. 

 

It can feel frustrating to see someone you’ve worked with a long time want to go to another direction or start their own venture, but it’s just a natural part of the process. It’s better for everyone if you don’t harbor any resentments when this happens. After all, you never know when you’ll be working with them again.

 

If you focus on creating a pleasant and productive work environment, you’ll find other quality candidates quickly. It’s important to value your employees. Otherwise, this inevitable turnover will happen at a much higher rate.

 

Bottom Line

These mistakes are easy to make, but it’s also possible to avoid them. 

 

As you grow, you’re going to learn more about the way you choose to do business. Don’t be afraid to tweak and refine your venture until you get the kind of work environment and the product you’d like.

 

Either way, be ready for some ups and downs and give yourself a break where you can. It’s ok to make mistakes in business. When you support your team, evaluate your weaknesses, and trust in your vision, you’re more likely to rebound and avoid deeper concerns. 

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