Mistakes Made by Startup Entrepreneurs - Complete Controller

The creation of a business can be extremely risky, no matter the industry or the entrepreneur. Nearly 50% of companies go out of business within three years of existence. To go surpass this 3-year mark and thrive, it is necessary to implement proper procedures when initially forming your business. Listed below are some common mistakes made by startups that ultimately contribute to their failure. Check out America's Best Bookkeepers

  1. Start with inadequate financial resources

Entrepreneurs often neglect to adequately plan their finances in order to minimize the amount of capital needed to start their business. The result of this? Inadequate funding for goals and the lack of cash reserved for unexpected situations and emergencies.

To avoid these issues, take care to prepare financial projections for your new business, particularly for the first 12 months. These can also help with obtaining financing and investments.

  1. Neglecting to write a business plan

Many novice entrepreneurs do not prepare a proper business plan. This document does not need to belong and detailed; however, taking the time to develop a solid plan will allow you to be consistent in your efforts, serve as a rallying point for your team, and facilitate setting deadlines for measuring your progress. Check out America's Best Bookkeepers

  1. Neglecting to track progress and adjust the shot

Do not make the mistake of only saving your business plan on a tablet. Create a dynamic document by constantly monitoring your progress and keeping it current.

  1. Buy assets with cash

The use of operating funds to secure long-term assets is a common mistake that can lead to a lack of liquidity. When evaluating your purchases of equipment, machinery, or computer services, consider using a commercial loan with a repayment period that corresponds to the life of the asset (for example, a seven-year loan for a vehicle you want to use for seven years).

  1. Avoid asking for outside help

Many new entrepreneurs avoid asking for help, even when they desperately need it. Get advice from a mentor, hire an outside consultant, or create an advisory committee to gain support and ideas.

  1. Set a bad price

Do not make the mistake of setting your prices only according to those of your competitors. In order to make an informed decision, it is important to perform a detailed cost search for each of your products. You must also routinely monitor your costs so that you can make the necessary adjustments. Check out America's Best Bookkeepers

  1. Neglecting technology

Canadian companies are investing less in technology than US companies, and that affects our overall productivity. Be sure to evaluate how technology could be beneficial for your business’s growth, efficiency, and profitability.

  1. Neglecting Online Marketing

Take care to evaluate how you can take advantage of internet marketing. For example, ads on social media platforms can be a more affordable way to effectively target specific segments of the market.

  1. Do not learn from your mistakes

When starting your business, learn from your mistakes and use them as a guide to success. Remember that many successful entrepreneurs failed on their first try. What is important is to come back stronger after understanding what did not work.

  1. To choose wrong partners

As the saying goes, it is better to be alone than badly accompanied. This applies perfectly when first creating your business. It is true that having a partner in launch can be reassuring; however, a bad association can completely harm the development of the company and its’ future. It goes without saying that it is not uncommon to see associates turn into enemies. This often occurs when their respective tasks have not been carefully defined from the beginning of the venture.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers