5 Mistakes to Avoid When Opening a Business
Opening a business is both a scary and exciting endeavor. You’re passionate about something, and you’re ready to monetize that passion. It’s the American Dream! Opening and running your own business is a lot more difficult than it initially seems, though. There are expenses and permits you never even imagined. That doesn’t mean it’s impossible to open your own business, but there are a few things you should avoid doing from the beginning to keep yourself from making painful mistakes.
Don’t hire your friends and family
Unless it’s a joint effort from the beginning, it’s a bad idea to hire your friends and family like employees. The most important quality an employee can have is competence and dedication to work. Hire someone who is familiar with what you’re doing and find different ways to involve your friends and family that are excited for you and your business to find success. They don’t need to work for you.
Buying used equipment
Especially when you’re first starting, it’s natural to want to save as much money as possible. Buying used equipment can be a risky thing, though. Used equipment isn’t going to last as long as new equipment, and therefore you’re much more likely to have to pay extra for repairs. Buying new equipment also comes with a warranty that will help cover the cost of damages. Used equipment doesn’t come with a warranty.
Not spending very much on rent
Keeping your overhead low is important. But if you’re in a workspace that doesn’t meet your needs to try and cut costs, your business will suffer. Don’t compromise on something like that.
Not investing in professional help
You’re an expert in your business, so let someone else be the expert in their own field. If you have no idea what you’re doing when it comes to contracting, payroll, or marketing, then hire someone who knows what they’re doing. You’ll end up saving money because you won’t be wasting money on failed attempts before you crack and invest in professional help.