Pitfalls to be avoided by SME startups

It is a very real statistic that a number of small and medium enterprise startups will not make it. Just because it can seem as if the odds are stacked against you, it does not mean that you should avoid launching your brand. All it means is that to have a fighting chance of beating the statistics and surviving in the ever-changing economic landscape you need to avoid some common mistakes that are made. By taking the steps to ensure you the best chance at success, you will be getting your company off to the best possible start.

Plan, plan and then plan some more.
It is easy in the beginning to be very motivated and excited about the prospect of starting your own business. This can lead to trouble down the road when problems arise that were not originally anticipated. These troubles can be related to financial issues, zoning or city planning and many other unexpected issues. By completely researching your business and the area where you plan to operate you can avoid many potential problems. You also need to consider capital and financing for your startup. Where will it come from and how much will be needed needs to be extensively considered. Many startup enterprises underestimate the costs that they will have and the amount of capital they will need.

Take advantage of every opportunity to promote your business.
Marketing is what will drive your business. In order to get customers you need to take advantage of the opportunity to promote your business and market your brand. One commonly overlooked item is the humble business card. You should never be without a stack of business cards in your possession. Anytime when you are in the company of other people there is a potential for networking. A business card is an easy way to leave a small reminder about your business or brand in the hands of a potential customer.

Credit and your startup…
Many startups in the eagerness of creating long-term relationships with clients will extend credit as a show of good faith. When your company is in the newborn phase, you will have to work quite hard to start turning a profit as you pay off all the costs that were associated with your launch. This means that there is a need for income and little room for credit as it prolongs the time before you will see money from a transaction. Some business make securing a charge account as easy as a click here and a click there; however, a credit check should be performed before choosing to extend charging privileges to a client. Once your business is established and you know how to deal with debtors, there will be plenty of time to create accounts and allow clients to charge items for later invoicing.

Do not be too emotional.
An age-old argument is whether emotion has any place in business decisions. When making a decision you need to separate emotion from fact. Emotion can cloud judgement and cause you to make choices that you may know are not in the best interest of your business and brand. Keep your head clear and focused to ensure that the choices you make are the right fit for your business.

Cover your assets.
Insurance is near the top on the list of what is important when starting a business. Improper coverage can lead to expenses that break your trail to success. Shop around, talk to insurers and do your research to be completely certain that the coverage you have is the right fit and comprehensive enough for your business.

By taking all of these factors into consideration, you are making a conscious effort to push the success of your SME startup. If you ignore them, you run the risk of having your business fail and incurring serious financial damage. You may be passionate and driven, but you also need to be informed and have a well-researched plan in order to recognize the success that your startup deserves.

This is a guest post by Dan McCarthy, a freelance writer and blogger who shares his business tips on various blogs.  He is currently blogging on behalf of Mayo Wynne Baxter. Click here to find out more about
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Comments

  1. says

    “Many startup enterprises underestimate the costs that they will have and the amount of capital they will need.”

    No one knows what the future holds. Even if you managed to set a pretty solid budget for the upcoming year, you need to be prepared for unexpected costs. Knowing how to prepare for the unexpected helps keep a healthy cash flow and keep business on track.

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