Setting up your own company could be one of the best things you ever do. It gives you a chance to escape the rat race, and instead put your efforts into something you are passionate about. You get to say goodbye to your commute, your boss breathing down your neck and working your life away to earn lots of money for a big company which gives you zero job satisfaction. However it’s not always plain sailing, here are three mistakes to avoid.
Not Borrowing Money Correctly
If this is your first business, chances are you don’t have tonnes of money up front. This can be an issue as it takes a substantial amount to get started as a company. You need premises, equipment, a website, staff, a marketing strategy and much more- this doesn’t come cheap. Since it’s difficult to get a business loan approved if you don’t have experience in business, a personal loan is a good way to go- sites like www.gobear.com/my/personal-loan can help you to find the perfect one for you. You will need to consider things like interest rates and repayment amounts, bear in mind that your company might not start making money as quickly as you had hoped. You need to make sure you can afford to pay everything back or you risk going bankrupt and having to close down before you’ve even had chance to get started. It’s worth bearing in mind that you need to maintain good personal credit to, your business will be considered an asset and could be seized if you fall behind with other payments even though they’re nothing to do with your company.
Not Budget Carefully
Finance and spending in business can be tricky to get right. You will need to ensure that you’re spending the right amount in each area, and not going over. The areas include marketing, staff wages, premises, materials and more- you will need to draw up a list of all of your expenditures and work out what you can realistically afford. It might be a case of taking on just one staff member until business gets going. You could hire smaller premises or even work from home at first. Business budgeting software can be useful to help you work out what you can spend, there are lots of different programs out there so find one that’s right for your company.
Not Expecting The Unexpected
The thing about business is it’s unpredictable. Sure you can minimise your risks and do everything right. But if a situation crops up where business is quiet for a while, a competitor takes your customers, you experience a flood, fire, burglary or something else you need to be prepared, Can your business survive the quieter times? Once you’re established it makes sense to have an emergency fund just in case. In the meantime, access to an emergency line of credit can keep you out of trouble until things pick up again.