Starting your own small business is an exciting process, however, it does involve a lot of work for it to become successful! You have a vision and what you want to achieve, but it’s usually the “how will I make this work” question that some people can’t answer.
Although there isn’t a perfect plan that everybody can follow to create a successful small business, if you avoid the most common mistakes that previously failed small businesses have made, you will have a higher chance at making your dreams come true.
When starting your first small business, avoid the following mistakes at all costs:
Not having a good plan
Planning your business is probably the hardest step when it comes to creating your first small business. If you are working by yourself, you will have to write a business plan, a financial plan, and a marketing plan. You will also need to do market potential and business idea research to ensure your product will work on the market and how to properly sell it to your target audience. Having a solid plan before starting your business is a major key to it becoming successful.
Not setting achievable goals
The main goal of your business is probably going to be “become successful and make a lot of money.” That is a great goal to have, but you need smaller and more realistic goals before you can reach your final goal. Set day-to-day goals, weekly goals, monthly goals, and yearly goals, outline how you will achieve each goal to make sure you are always on track to reaching them.
Lack of confidence
Sometimes, fear of failure gets in the way of small businesses which results in a lack of confidence in their products or services. These businesses will then undersell their products which will hurt them in the end. Your product is great and you need to properly price it properly compared to the fair market value!
One of the biggest mistakes a new small business will make is not marketing their products. They think what they are offering doesn’t need marketing and that customers will just find them naturally. That just doesn’t make sense. Marketing can be anything from word of mouth to buying ads for social media platforms. If nobody knows about your product, nobody is going to buy it.
Not understanding taxes
When you create a new small business in Canada, you are entering a whole new world when it comes to taxes. You will have to file separate tax returns, keep up with salary expenses and minimum wage increases if you will be hiring employees. Hiring a trusted tax accountant for your small business is one of the smartest decisions you can make when planning to start a new company!
At S&W LLP, we love working with small businesses and we pride ourselves on being easy to work with and help you better understand how to handle your taxes. Our small business accounting professionals have a wealth of knowledge and will be able to provide you with reliable, relevant, and resourceful counselling on all of your accounting needs. Book a free 30 minute consultation to go through your ideas and goals to see how we can help optimize your taxes!