Common mistakes made by first-time business owners
When it comes to business, some mistakes are hard to avoid. Making mistakes and learning from them is all part of the process. Most first-time entrepreneurs will make a few mistakes as they learn how to run a business and juggle all of their new responsibilities. Some of these mistakes can cost you money or slow the growth of your business. Others can hurt your mental and physical wellbeing, as it often happens to my clients. Guest blogger and expert Sam Marcum is providing some useful tips in this post to help you avoid the most common mistakes made by new business owners.
Choosing the Wrong Business Entity
Every decision you make as you prepare to launch your business can have long-term consequences. For example, registering your business as the wrong business entity can make it difficult to secure funding, pay employees, or do your taxes. Many first-time business owners start out as sole proprietorships, but this type of business entity offers nothing in terms of tax benefits or liability protection.
Instead, consider registering your business as an LLC right from the start. Depending on which state you’re in, the process of forming an LLC may differ slightly, so make sure you check your state rules before moving forward. Online formation services like ZenBusiness make it easy to form an LLC without hiring a lawyer!
Skipping the Planning Phase
According to Growthink, lack of planning is the primary reason businesses fail. It’s not uncommon for new entrepreneurs to jump into action without first sitting down and planning out their businesses. Writing up a business plan will help you organize your thoughts and determine exactly which steps you need to take to reach your business goals. During business planning, consider important things like your short and long-term goals, budget, target audience, competitors, market opportunities, and sales strategies. Unless you’re seeking investors, keep it simple with an informal business plan.
Far too many entrepreneurs put their health on the back burner. While it can be hard to find the time to take care of your health, you can’t afford to neglect self-care. Entrepreneurs commonly suffer from a range of health issues, from depression and chronic stress to digestive issues and hypertension. Not only can these health problems disrupt your personal life, but they can also make you a less effective business owner.
Take proactive steps to maintain your health as you prepare to launch your business. This means nourishing your brain and body with nutritious foods, getting enough sleep every night, dedicating time for relaxation, and moving your body as much as possible. Making self-care a part of your day is a fantastic investment in your long-term success!
Working Towards Burnout
Burnout is an incredibly common problem among entrepreneurs. New entrepreneurs, in particular, often put themselves on the path towards burnout without even realizing it. Burnout occurs after extended periods of chronic stress. This happens when the body can no longer withstand existing in a state of “fight or flight” and begins to succumb to emotional, mental, and physical exhaustion. Don’t let this happen to you! Slow down, make time for self-care, and learn how to prevent burnout as you get your business off the ground.
As a new business owner, you can—and will—make all kinds of mistakes. And that’s okay! Learning how to overcome setbacks will make you a more competent and confident business owner. The worst mistake you can make is to ignore your personal wellbeing. No level of success is worth sleep deprivation, depression, malnutrition, mental exhaustion, or the long-term health effects of neglecting exercise. Take care of yourself and you’ll have everything you need to succeed as an entrepreneur!
Do you want to know the secret to life-work balance? Schedule a free Clarity Call with me today to see which coaching program is best to help you achieve wellness in your professional and personal life!
As a Holistic Precision Life Coach and creator of the Life-Work Balance System, I empower ambitious professionals and high achievers like you to optimize themselves and unlock their full potential, fostering enhanced well-being and productivity in their lives and careers. I combine innovative methodologies (epigenetics, neuroscience, chronobiology, and positive psychology) to facilitate profound lifestyle transformations.