Starting and running a business can feel like a whirlwind at times. Quite often you’ll need to wear more than one hat, making decisions on everything from operations and HR to Marketing. It can be easy to make mistakes when you’re operating at 100mph, so we’ve put a list together of the typical problems faced by start-ups and how to avoid them.
Learn how to delegate
As a leader it’s your job to inspire your employees with your long-term vision for the company and do all the strategic planning. As your business grows, you’ll need others to manage certain areas of the business to ensure its success. Making sure you hire team members with skills different to your own, that’ll add value to your business is key. Relinquishing control to somebody who has experience will improve both your business and your ability to manage people well. Ultimately making you a successful leader.
Learn from your mistakes
Every failure is an opportunity to learn and grow when you’re starting a business. Especially when 8 out of 10 small businesses fail within the first 18 months. Being a startup often means that you can be flexible and change your approach quickly as and when issues arise. Leaving you at an advantage when compared with larger and more traditional businesses. Removing fear of failure from your business and encouraging a culture of learning can help teams feel freer to innovate and be creative.
Protect your intellectual property
Starting a business is no small feat. You’ve worked hard to build your brand and create your products, so it makes sense to ensure that all your tangible assets are protected. Especially if you’re planning for long-term growth (which hopefully, you are). The theft of intellectual property is a common problem that costs the UK government £56 million a year. Organised crime gangs cause significant damage to industries that produce high quality, legitimate goods. Patent, trademark and copyright protection are your best bets against what might potentially be a significant financial loss.
Put everything in writing
Regardless of the kind of relationship you have with your vendors, suppliers, employees and customers – making sure you have a well-defined signed, and legally binding contract could save you a lot of time and money over any disagreements that might arise. It’s tempting to pick speed over being more thorough when you’re busy but making sure you have everything in writing almost acts as a kind of insurance in case you ever need it (which hopefully you won’t!).
Don’t be afraid to ask for help
Being proactive in reaching out to and building relationships with experts can help you build a solid foundation for your business. These are the people who will know the intricacies of your business to ensure that you’re making the best decisions. Whether you need help with legal advice, recruitment, tax or accounting, you can generally find somebody who will help you review contracts, establish a good tax structure and hire employees so you can concentrate on growing your business.
Now you know what mistakes to avoid, why not set up your own business? Our formation packages come with everything you need to set up a successful Limited Company.