Starting your own business is an exciting and rewarding endeavor. Once everything is up and running, you’ll need to work hard and make investments both financially and energetically to build your company and help it grow.
Many things can stand in the way of a successful, thriving business. Fortunately, by avoiding a few common business mistakes, you can grow your business more easily.
- Not building scalable systems: For many business owners, their companies are their babies; it’s natural to want to be hands-on in every aspect. However, there are only so many hours in a day, and you can’t do it all on your own as your business continues to grow. One of the most important business mistakes that owners should avoid is not building systems that are both efficient and scalable to take their companies to new heights. This also requires you to have a reliable employee base and focused manager/director leadership you trust to implement and manage these systems while you focus on new opportunities for growth.
- Not reinvesting in your business: If your business has ridden a track record of success, and you’re consistently turning great profits, avoid pushing all that money into savings or spending it on things that don’t directly benefit your business. Business and franchise owners must reinvest in their businesses to build on their successes – not limit them. Choose one or two areas of your company you’d like to bolster, such as marketing or new technology, and put your profits to good use for faster growth.
- Not having a business mentor: Running your own business gives you the freedom to make decisions and try things in the ways you want, but everyone can use a little external advice once in a while. Turning to a business mentor who has been in your shoes can help you see things in a way you hadn’t before, opening your eyes to new possibilities for growth and potentially stopping you from making mistakes that could harm your company.
- Not having enough capital: All businesses need capital to operate, but limited funding could prevent you from growing, too. Without enough capital, you might not be able to hire new staff or explore new sales channels to expand your reach. If you’ve hit a financial wall during your startup phase, you might want to consider recapitalizing your business through SBA 7(a) loans, Unsecured Lines of Credit or Rollovers as Business Startups (ROBS). These methods help you gain access to more funding that you can use for marketing, staff or business upgrades.
- Accruing too much debt: Although loans and lines of credit can be useful when navigating a hurdle in your capitalization process, accruing a lot of debt can also be limiting for a business’ growth. It is in these situations where recapitalizing using ROBS can really help businesses thrive without debt or penalties. ROBS is a debt-free method of starting or recapitalizing a business or franchise.
You work hard to keep your business running and leveraging smart capitalization options can make things go even more smoothly. If you’re working on building your startup or preparing it for growth, contact Tenet Financial Group to learn about our funding choices for small business and franchise owners.