If you have decided to start a small business, then this is a very exciting time for you. You are well on your way toward success as you go through your entrepreneurial journey. However, even the most experienced business owners may make mistakes and stumble on roadblocks. Today, we will go over some of these mistakes and small business roadblocks and how to avoid them.
Failing to Have a Backup Plan
Risk-taking isn't always a good idea when it comes to starting a new business. Not everything always goes according to the plans you have in place in the beginning. This is why having a backup plan can prove to be beneficial. Calculated risk-taking and caution can go a long way.
A US Bank study reported that 82 percent of businesses fail due to cash flow problems and poor cash management. It is important as a business owner to understand your finances and have a good idea about where the expenses are within the business. For example, what expenses do you cover each month? Consider employee salaries, rent for your office space, marketing, taxes, legal fees, and insurance costs.
As a business owner, you are responsible for that business and everything that happens. Organization is key to success. It helps keep all the moving parts working as they should and can help you avoid feelings of being overwhelmed and frustrated.
When organizing, stay on top of everything. Make a plan for the growth of your business, pay all the bills on time, manage the employees, make sure your business remains in compliance at all times, update business licenses as needed, file your business taxes, and ensure your business insurance offers you the right coverage and is what your business needs.
The Wrong Insurance
Another mistake business owners often make, and a roadblock keeping them from growth and success is when they choose the wrong insurance or fail to have the right insurance in place.
When purchasing insurance for your business, avoid always buying the least expensive policy. You need to have a good understanding of the policy and what it covers before you make the purchase.
You also want to avoid not having enough insurance in place. Many businesses purchase a commercial property policy, but they sometimes fail to notice the limits. This means they are stuck paying out of pocket, which can significantly hurt the bottom line.
Don’t assume that your insurance policy covers everything you need when it comes to accidents and damage to your property. Look for coinsurance clauses and agreed value provisions in the insurance policies you are reviewing and obtain quotes from several companies before landing on the insurance for your business.
To help you make more informed decisions and also help ensure you are purchasing the right kind of coverage for your business along with the right policy limits, contact the professionals at Panorama today.