Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Business » Small Business » Article
 

Starting a Small Business!-Avoid these Four Major Entrepreneurial Mistakes.




By Kanaga Siva

It is with much hope that every entrepreneur sets off starting a Small Business. Making money was his main objective. Failure was never in his mind but things don't seem to happen the way he had planned for. Even the hope for Survival seems to have disappeared and Failure haunts him at every turn. Why does this happen and happen so often to numerous small business entrepreneurs?
The four major mistakes often made by new small business entrepreneurs are:

1. Improper or No Research:

The most fundamental thing to do before starting a small business is to do a market research to find out whether there is sufficient demand for the product or products you have to offer.
Perhaps the reason for the failure to generate the funds is that there is no market for your product or the market is saturated. The need for your product in your area of business activity should be your prime consideration before starting a small business. Only if there is sufficient demand for your products, you will be able to generate the funds necessary to help you run your small business, survive and succeed.

2. Improper or Under Funding:

Quite often the urge to start a small business is so great that the very vital aspect of funding is not given due importance. Businesses are started on a shoe string budget and shops open with very little stock and offices with insufficient equipment. To ensure the purchase of stock and equipment it is absolutely essential to have proper funding in place before commencing your business. Furthermore your business might take several months to start making a profit and hence funds are necessary to help your small business survive and keep your morale up during these early months.

If you don't have sufficient funds of your own, it will be wise and proper to obtain a loan before starting your business. This could be obtained from your bank or you can seek the assistance of the Small Business Administration which offers numerous loan programs to assist Small Businesses.
It is important to note that the SBA acts primarily as a guarantor of loans made by private and other institutions.

Taking huge loans out of proportion to your needs can also be detrimental to your small business since provision has to be made for higher interest payments.

3. Insufficient Advertisement and Promotion:

No Business can be successful unless the public is made aware of the existence of your small business and its products. The best of equipment and stocks cannot generate sales unless the public is made aware of it. Hence advertising your small business and the products before the commencement of your business and thereafter should be a major consideration. Failure to do so has been the cause of failure of several small businesses.

4. Unnecessary expenditure:

One of the major causes for the failure of a small business is the improper handling of the funds. Extravagant expenditure at the initial stages such as the purchase of expensive cars, equipment and expensive business lunches completely out of proportion to your needs can eat into the capital and leave your small business with very limited working capital. Hence proper and wise handling of funds especially at the early stages can make all the difference between success and failure.

Conclusion:

Failure to avoid the above mentioned mistakes for one reason or the other can be detrimental to the progress and success of your small business.
Securing the services of a consultant to help you plan out your small business before starting will be a wise move to ensure success.
 
 
About the Author
Copyright 2006 Kanaga Siva

Kanaga Siva has a wealth of experience in Marketing and operating a successful Home Based Business. You are welcome to visit his Free Home-Based Business Website for Articles, Resources, Ideas and Advise to start a Successful Small Business or Home Based Business http://www.business-fromhome.com

Article Source: http://www.simplysearch4it.com/article/46809.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/46809.html" as shown above and make it hyperlinked.



  Some other articles by Kanaga Siva
Why Affiliate Marketing Program is Internet's Incredible and Powerful Magnet.
The Affiliate Marketing Program is one of the greatest boons the Internet has bestowed on the business opportunity seeker aspiring to make money but lacks the financial resources. ...

Tips to Reduce Stress and Excel in Your Home Based Business
Most people planning to work from home are generally under the impression that working from home ensures a stress free life. They attribute this to the fact that they no ...

Practical Internet Home Based Business Ideas, for the Young and the 50 + Entrepreneur.
The Internet has become a very powerful means of instant communication but unfortunately a large segment of the Seniors who have ...

The Incredible Power of FREE in Internet and Affiliate Marketing!
Free Membership, Free Submission, Free eBooks, Free Websites, Free Downloads, Free Classifieds, Free to Join, yes anything Free has an incredible pulling power in both Internet and Affiliate Marketing. ...

It's Great to Work from Home-Are You Aware of the Challenges!
Day by day the numbers joining the ranks of those working from home is increasing by leaps and bounds. Though working from home has several advantages and attractions, it has its challenges too. ...

Change in Lifestyle and Environment- The Secret to a Happy Retired Life.
Change is inevitable. That is the law of nature. The natural process of aging is gradual and those who are near and ...

  
  Recent Articles
What Should You Be Saying When Others Ask "What Do You Do?"
by Yvonne Weld

Small Business Owner Sales Tips
by Jim Degerstrom

Material Handling Equipment: Efficiency Guaranteed!
by Suzanne Macguire

Business Cash Advance Business Funding Made Easy!
by Ray Smith

Seven Things Forgotten When Doing Business Backups
by Lynette Chandler

Can You Get Rich in Your Town?
by Steve Kroening

Are you missing out doubling or trebling Your Profits?
by John Harriyott

Used Office Furniture for Small Entrepreneurs
by Sarika Kabra

Blowers Manufacturer
by vineetgoswami

Seven Alternative Sources of Capital for Setting up a Business
by Amy Grace Remollata

What Are You Doing To Create A thriving Business?
by Yvonne Weld

Incorporation and Limited Liability Company Formation in the UK
by Terry Cartwright