Five Small Business Mistakes You’re Probably Making

Believe it or not, but we all make mistakes – whether it’s in our personal lives, social lives or even our professional lives. Small business owners are no exception to this rule, and many may end up making mistakes in their first years of business. Some even continue making these mistakes well into their business’ twilight years! But knowing what these mistakes are will help you to avoid them, so here are five of the most common mistakes small business owners make, as well as tips on how to not make them yourself.

1. Getting Stuck in Development

If you’ve got a great idea, you’ll probably want to spend time working out development details. Development is incredibly important, but it’s equally important to not get stuck at this stage. There are loads of small business owners who’ve stepped back from innovating because they weren’t sure about how their idea would be received. But if in doubt – go with it. You won’t know until you try.

2. Micro-Managing

If you’re the kind of business owner who has invested tons of time and personal finances into your start up, you’ll want to make sure that every little thing goes just right. But this kind of micro management is not only a waste of your time; it’s counterproductive for your entire organisation. Delegation is a vital management skill which you must learn to get to grips with if you want your business to flourish. Outsourcing tasks which you can’t handle could free up your time for more important things, and give your employees the opportunity to innovate and grow within your company.

3. Ignoring Your Legal Responsibilities

No matter what kind of business you have, you will need to abide by certain legal guidelines. This will vary from business to business, depending on the industry and certain other factors. Failure to stay within the law could result in some pretty hefty fines – or worse, jail time. As the owner, you are responsible for everything that happens within your business – even other people’s mistakes. So make an appointment with your business advisor, shop around for insurance, and always read any fine print you’re presented with.

4. Getting Carried Away

Scaling up too fast and overestimating your productivity are two classic mistakes which growing businesses make, and one which can have costly repercussions. Making promises which you can’t deliver on is the quickest way of losing your customers’ respect and trust. Both of these mistakes can be attributed to one thing – getting carried away. Instead, keep a reign on your excitement and be realistic about your projections.

5. Putting All Your Eggs in One Basket

It’s all too easy to get carried away by a great idea, especially if that idea is a brilliant product, savvy marketing strategy or affluent client. But if you don’t diversify your business tactics and something goes wrong, you could potentially stand to lose it all. Instead, protect yourself, and your business, by making sure that your resources, and finances, are wisely allocated to different projects.

Towergate are a reputable provider of shop insurance solutions for all businesses, large and small. Towergate Insurance – protecting you against many of life’s little mistakes.