Have you been toying with the idea of starting your own online small business? Have you got a great idea that you think you could get off the ground and turn it into something really incredible and successful? While those are great starting points for any entrepreneur, it takes more than just a great idea to set up a successful business. It’s important to not only be aware of the key steps to take, but also the mistakes you’ll want to avoid making so you can save yourself a lot of stress, time, and money.
Here’s a look at three mistakes that online small businesses will want to avoid making.
Not Creating a Solid Business Plan
When it comes to the mistakes that small businesses can make, one of the biggest ones is failing to make a business plan. The idea that you’ll just “go with the flow” and see where the business takes you isn’t one that leads to success in the majority of cases.
A plan that looks at how the business will be set-up and operate, financing, who your target market is, how you plan to attract customers, and even staffing should all be thought of in advance. Think of it as your blueprint to success that you can refer to along the way, and help you to overcome obstacles as they arise.
Operating as a DBA
Here’s a mistake that many small businesses make that can end up causing a lot of stress and issues down the road. Often when you start a small business there is no desire to form an LLC as most feel it’s unnecessary. Instead, small business owners will operate as DBA – which means Doing Business As. This is most common when the business is owned by a sole proprietor who wants the business name to be different than their own individual name.
Depending on which state you are operating in, a DBA can even be registered, but keep in mind that registration doesn’t give the same legal protection or limited liability that an LLC offers. You could in fact be opening the business up to risky issues such as legal issues in the future.
Some of the main risks involved include the fact that the DBA registration is often limited to your actual county that you operate in, there is a severe lack of legal protections without an LLC registration, and your naming rights are reduced.
Assuming You Can Do It All on Your Own
Then there is the attitude that you can just do it all on your own, and that you don’t need any help. The fact is that you probably aren’t an expert in everything; there must be some areas you don’t possess the proper skills, knowledge, and even tools to get the job done properly. This is why it’s so important to recognize when you need help, what kind of expertise you need, and then secure qualified staff or contractors.
You Are Armed with Knowledge
By keeping these three pivotal mistakes to avoid in your mind, you’ll be armed with useful knowledge that can help you sidestep potential issues.