If you are a successful business owner, you’ve made your share of mistakes. Most will say that they were able to recognize their mistakes and correct them. But if you are just starting out or in the early stages of your business, here are some rookie mistakes to avoid:
Don’t put too much energy into things that don’t make a difference in the long run. Put all your energy into finding customers and filling their orders. The most important thing in the beginning of a business is to reach the point of sustainability, when you know you have enough business to keep the company going.
Don’t make employees part owners because you want them to feel included. Only do this if there is an overwhelming reason for it. The extra work of having another owner usually proves to be a bigger problem down the road. A smaller version of this issue is promoting people too fast or giving people titles that imply they are way more important than they actually are.
Don’t rush to legally incorporate your business. This step can usually wait. The upside of incorporating kicks in when you are making good money. The downsides of incorporating too early may include choosing the wrong structure which could turn out to be expensive. For example, having a corporation means you must comply with a certain set of rules such as having board meetings, keeping minutes, and filing separate tax returns.
President, Business 360 Northwest