Startup Mistakes
(Small businesses can learn from these common
missteps.
All small business owners make
mistakes—and that can be a good thing. It means we’re taking risks, and that’s
how we grow our businesses. But making too many mistakes during the startup
phase could land you in trouble. The key to small-business survival is to learn
from your missteps and those you see other businesses making.
Mistake
1: Setting your prices too low or too high. When it comes to pricing, service businesses have it a
little tougher, since there isn’t a clear-cut cost of goods, and it’s easy to
underestimate the time a job will take. Consult an association for your
particular industry to help determine average prices for your type of business,
clientele and location.
Mistake 2:
Working without a contract. Contracts
or letters of agreement (LOAs) are there to protect you, spell out each party’s
expectations, and establish deadlines and payment schedules.
Mistake 3:
Being inflexible. Things
change. Sticking with your business plan when
the market has shifted makes no sense. You need to frequently ask yourself, “Is
this working out the way I thought?” If it’s not, it’s time to move on to Plan
B.
Rieva Lesonsky is the founder and CEO of GrowBiz Media and
SmallBizDaily She's a best-selling author and served as the former
Editorial Director of Entrepreneur magazine.
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