Common mistakes when setting up small businesses

Many businessmen make common mistakes very often when it deals with own business management. The often mistake in this question is excessive spending. Such a mistake arises when enough means are collected. Every wise businessman understands that providing of stable business network requires a lot of money because total expanses while starting a business may be quite impressive.

Leasing of office space unlike buying of real estate is a way when a businessman tries to reduce expenditure side. It depends on a type of business for example a question of stalls or shops leasing may also be considered which may lead to reducing of all overall expanses. It would also reduce total amount of needed seed fund.

Another important point which could face a businessman - is a position of future business as well as choosing a wrong place may lead to whole failure of a company. Amount of rent at a particular location may be quite acceptable but it can be located in a place where it will be extremely difficult to attract potential buyers. Before you finally make your mind about a new business location you should explore different areas and territories in order to assess the existing models of potential buyers. If a company is located in a fairly well-known place it can certainly attract a huge stream of customers on the other hand same things can never happen this way in unfamiliar place. The most suitable place for a small business will depend on the target audience mostly.

In addition to this question you should take into consideration such aspects as general costs, money receipts, staff recruitment, and duration of lease. In addition if a businessman decides to set up his business in a public place such as a building facade in a famous street or near a park he or she shall apply to local authorities to obtain necessary permission. In general many of these common mistakes are made due to lack of experience and insufficient market research. Nevertheless businessman will receive a financing for his business or not such problems as excess costs, an unfavorable position, or even bad target marketing may eventually lead to collapse of a whole company.

26 May 2011
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