Common Mistakes Small Businesses Make and How to Avoid Them with Merchant Cash Advance
Unfortunately very few start up businesses make it beyond their merchant cash advance 3rd year. Failure is usually down to a number of clearly identifiable mistakes, which if small business owners are aware of, can increase their chances of survival.
Here are the top 10 common mistakes which small merchant cash advance businesses tend to make.
Lack of Market Research
When a budding entrepreneur comes merchant cash advance up with an idea for a new business he assumes that because he would buy such a product or merchant cash advance service then everyone else will. This may be the case for day-to-day necessities but for merchant cash advance other items this is usually not so.
It's important that when you start up you carefully research the market to check that:
• There is demand at a level which would merchant cash advance lead to a sustainable business
• People are prepared to pay the price required for merchant cash advance you to make a decent profit
Undertaking market research may appear time merchant cash advance consuming but the effort will pay off.
Poor Record Keeping
Some business people are not born administrators; they merchant cash advance feel more comfortable getting out there and 'doing the business'. Paperwork is too easy to merchant cash advance ignore but can never be put off indefinitely. Sales, purchases and other merchant cash advance expenditure must be carefully documented, so you know whether you are making a merchant cash advance profit or not. Invoices must be issued on time and chased up merchant cash advance promptly if there is a delay in payment. It's all very well having the sales but poor record keeping can hold you back. Having merchant cash advance your paperwork in order will also save you time when it comes to your accountant doing your year-end books!
When starting off it's easy to decide what merchant cash advance capital is required for fixtures and fittings, machinery and stock. What many new business owners merchant cash advance forget about is the cash needed to fund day-to-day requirements, i.e. cash to merchant cash advance pay expenses before your customers pay you. This is known as your merchant cash advance working capital requirement.Small businesses can fail merchant cash advance because they have insufficient merchant cash advance cash to start off to meet these merchant cash advance immediate expenses. If you wish to survive make sure you set aside enough cash to meet all your needs for the first few months.
Ineffective Marketing Or None At All
You cannot afford to treat the cost of marketing as an unnecessary merchant cash advance expense. A business with no marketing is like waving in the dark – you know you are merchant cash advance doing it but no one else does! There are many ways to promote your merchant cash advance business on a small budget; it's just a case of being inventive and creative. What ever you do, don't assume that people will quickly know you are in merchant cash advance business – they won't, unless you tell them.
Ingoring Changes In The Market Place
As a small business owner it's very easy to get immersed in your merchant cash advance business and not see what is happening around you in the market place. Always keep merchant cash advance your eyes and ears open to what the competition is doing and what your customers want. Don't get left behind.
Attitude is everything in business. Don't merchant cash advance forget that the real boss in your business is the customer. Running a business may make you merchant cash advance feel important but don't let this develop into an 'I am better than you' attitude. Do this and you merchant cash advance will quickly chase your customers away.
Spending On The Wrong Things
Being in business can be exciting, especially as the cash merchant cash advance starts to roll in! However, don't be tempted to spend it on a new car, a house merchant cash advance or just a good time. If you are to own a successful business then you have to keep merchant cash advance some cash back to fund future growth. A business cannot grow without cash, so merchant cash advance commit to spending business money on the business.
Dependent On A Small Number Of Customers
Don't fall into the trap of setting up a business just merchant cash advance because one person says they will buy from you every week or month. Setting up merchant cash advance and running a business, which is dependent on one customer, is not a recipe for success. What merchant cash advance happens if, one month after you have spent all your merchant cash advance cash to set up your business, that customer says he has changed his mind and has decided to merchant cash advance buy elsewhere? Unless you can find other customers very quickly you are faced with merchant cash advance closure.Before embarking on a new venture make sure merchant cash advance you have a sufficient number of customers such that if a few go elsewhere you can still continue trading.
Growing Too Quickly
Surprisingly, growing too quickly can be a merchant cash advance problem. You have to be disciplined enough to only take on work you can handle. If you are tempted merchant cash advance to accept too much you could end up disappointing not only the new client but also merchant cash advance your existing ones. Also, don't under-estimate the merchant cash advance impact rapid growth can have your administrative burden. As I mentioned earlier, getting behind merchant cash advance on the paperwork can have an equally damaging effect on your business.
Trying To Do Everything
Finally, the problem most small business owners have merchant cash advance is the fact that everything falls on their plate. Inevitably this is how it's likely to be in the beginning, merchant cash advance when the limited budget means that staff are a luxury, merchant cash advance but as the business grows be aware that you cannot continue to do all tasks. There merchant cash advance will come a point when you become inefficient and not have enough time to merchant cash advance complete everything in sufficient detail. Taking on an merchant cash advance extra pair of hands will increase your costs but you will be surprised at how much time will be saved, allowing you to do what you do best – getting the business merchant cash advance in.
Take a look at each of the mistakes and make merchant cash advance sure that you don't fall into these traps.
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Posted on: August 6, 2011 12:11 AM