Business organisation: Beginner's mistakes

Mistakes - an integral part of any human activity. Everyone knows the expression: only those who do nothing are not mistaken. In today's post on the ElektraKwiks blog we will talk about the most common mistakes made by beginners in business.

Invest a lot
For example, mistake number one: investing a lot of money in development right from the start. This should never be done. It is very likely that your first business will not be successful. At best, you will get a zero or small return on your investment, but most likely you will make a loss. Sure, you will gain experience. But you will lose money. Therefore, it is not advisable to invest a large amount of money in the beginning. Assume that your first business will have to be built from scratch. It is better to invest your time, which you can then turn into money.

Friendship is friendship, but money is money
Starting your first business in partnership with someone else is another common mistake. It is not recommended to start with a friend, partner, relative, etc. Why is this bad? Because you have probably not agreed on anything: what to do with the first money, how to divide it, who is responsible for what, what to do if someone wants to go out of business, and so on. The biggest problem with this way of starting a business is that it shifts the responsibility onto someone else. This means that instead of making your own decisions and working on the development of the business, you give yourself room to retreat. In the event of failure, you will be able to say: "It was not my mistakes that led to bankruptcy.

In addition, as soon as there are difficulties or the first big money comes in, you are likely to break up and simply walk away. This is why it is better to start your first business yourself: all the money is yours and the responsibility is yours alone.

Big costs

If you think a business is all about a nice office, staff, coffee machine and the like, you're going to be disappointed. It will all be there, but later. If you succeed. And to start with, all you need is a computer with Internet access. It is important to realise that the office, the staff, the equipment, the purchase of consumables - this is a significant monthly cost. Therefore, at the very beginning of your business journey, the main task will be to minimise costs. The lower the cost, the better.

Race for turnover

Don't race to put as much money into the business as possible. Invest as much as is necessary for its stable operation and development. After all, what is the main purpose of starting your own business instead of working for someone else? We can't speak for everyone, but let's say you set up your business to earn more money than you could in a permanent job. The main purpose of this business is to have free money to spend on yourself and your family. So don't measure your turnover, enjoy your life.

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