Everyone makes mistakes in business. For the most part, it’s part of a steep learning curve that will serve you well in the long run. After all, mistakes and learning from them so you do better are character-building, which is essential for any business owner. It’s par for the course and can allow you to be a better owner and run a better business.
However, that being said, there are some mistakes you should avoid, as they can spell disaster for you and your company. But what are they?
Not Setting You The Right Business Structure
This is a big one but an important one. Rushing into setting up your business and not putting thought into what you’re registering, the structure you’re operating under, and what this means for you can lead to all kinds of complications.
Are you anticipating a high turnover, and must you ensure you’re set up to pay the correct business taxes? If you are GST Registered, VAT registered if trading in the UK, or registered for sales tax in each state, you meet the economic requirements.
Not Paying Taxes
Or, more importantly, trying to find loopholes to get out of paying your taxes illegally or not declaring earnings. Any of these actions, plus other tax avoidance behaviors, can land you hot water, and the fine, if you’re caught, can be massively detrimental to your business and your reputation. The last thing you want is to lose your business because you tried to get one over on the taxman. This is where an expert tax accountant can be a lifesaver, assisting you in ensuring you’re claiming everything you need to be aiming for and that everything is legal and above board.
Neglecting Cyber Security
If you hold any type of identifiable data on anyone, both employees, vendors, or customers, you need to maintain high levels of data and cyber security. Cyber attacks are on the rise, and cybercriminals are increasingly targeting smaller businesses due to their inability to secure defenses to keep them out. They will assume you aren’t protecting yourself, and if you aren’t, this can be a disaster for you. Not only will you be fined accordingly if you are found to be negligent in protecting data, but you will lose your trust and reputation, which can be just as damaging as being hit with hefty fines.
Not Understanding Your Market
You will sink if you’re not paying attention to changes or developments in your industry or your market and target audience. There’s no way to sugarcoat it. You need to understand the market, what your customers want, and where you fit in. If you neglect to stay on top of this information, then chances are you will be left behind with an obsolete business model, and you will end up with another failed small business statistic, serving as a cautionary tale for others who might be on the same path.
