Every business makes big mistakes in the first year, but you should make sure that you are trying to avoid as many as humanly possible. Every one of these errors will cause problems for you if you let yourself fall into patterns that you might not be able to get out of.
The following 10 problems can sink your business if you are not careful, so avoid them at all costs.
1. Chasing Costs
Chasing your costs means that you are going to have problems paying off all the things that you have taken loans or used credit for. You will feel like you can never pay for anything because you have too little money, and you will never feel like you can get out of it. Be cautious at first. You can keep your business in the black if you are not chasing your costs.
2. Taking Out too Many Loans
Taking out too many loans is part of chasing your costs. This means that you are going to have a problem with managing your money. The people that you owe money to are going to cause problems for you, and you will have to start dodging people who want money from you. You will be stressed all the time, and you will feel like you are going to fall apart because you cannot pay. Take few loans or none at all.
3. Hiring Too Few People
Not having enough people in the office is going to cause problems for you, and you will get too stressed because you cannot do all the work yourself. You need employees in the office to help you not only run the business but deal with problems that arise. You also need to make sure that you have given everyone a job description that is going to help them understand what to do so you can make an online income.
4. Hiring Too Many People
While it is important to have qualified employees, having too many of them can also cause problems. You do not need a task force to get work done. Hire a few people you can trust to get their work done and done well — do not go overboard.
5. Taking On The Wrong Venture Capitalists
The wrong venture capitalist is going to want too much of your company or too much control. This means that you are going to feel like you are fighting someone who has been giving you money to help you grow your business. Make sure that the management style of your business is going to remain under your control. Those who loses control of their business are going to lose the online income they have put into it.
6. Not Controlling Your PR
Not controlling your PR is the worst thing you can do for your business. You have to know what is going on outside your company. You will be in big trouble if you are not aware of what is being written or said about you in the media or on social networking sites. Stay aware so you can control your image by responding to complaints or false information. You have to stay on top of this as much as you can to maintain your online income.
7. Not Responding to Customer Service Complaints
Not responding to customer service complaints is going to sink your online income really fast. People will tell their friends or even spout off on social media if they are not satisfied with your service. You have to give every customer your very best. Do everything you can to satisfy those with a complaint. If you can fix their problems satisfactorily, there is no reason why they would not purchase from you in the future.
8. Treating Your Employees Poorly to Get More Productivity
Treating your employees badly to get more productivity will backfire. You will not only lose employees, but will end up on a list of companies that are hard to work for. You do not want to have that kind of distinction, and you do not want to be in a position where you cannot hire competent employees.
9. Ignoring Obvious Trends in Your Industry
The trends in your industry need to be right on the tip of your tongue. You need to move with the industry, and you need to make sure you are doing the same things your competition is doing, but better. Of course, being unique is important, but you will have major problems if you just ignore what the competition is doing — and it may just cost you online sales.
10. Marketing Improperly
Your marketing has to look good, and it cannot be controversial — not if you want to make an online income. You cannot lose market share when you do not have any, but anyone who thinks your company is controversial is not going to want to deal with you. Put a lot of thought into your marketing. Use focus groups so that you do not get yourself into trouble.
Everything on this list is going to happen in the first year unless you are planning the right way. Everyone who wants to have a good business needs to read this list carefully to make more online income.