17 Common Mistakes of a Small Business

As an entrepreneur, the most hated thing would be to see the bank accounts diving down or going bankrupt. Small-businesses are relatively less risky and easier to run, but there are many common mistakes which entrepreneurs make which lead to inevitable failure to the business. In this post 17 such common mistakes are listed below:

1. Plunging in without first testing the waters on a small scale.

2. Under pricing or overpricing the goods or services.

3. Underestimating how much time it will take to build a market.

4. Starting with too little capital.

5. Starting with too much capital and being careless about how to spend it.

6. Going into the business with too little or no knowledge about it or without learning anything about the industry or the market.

7. Borrowing money without planning just how and when to pay it back.

8. Attempting do too much business with too little capital.

9. Not allowing for setbacks and unexpected expenses.

10. Buying too much on credit.

11. Extending credit too freely.

12. Expanding credit too rapidly.

13. Falling to keep complete, accurate records, so that the owners drift into trouble rapidly.

14. Carrying habits of personal extravagance into business.

15. Not understanding business cycles.

16. Forgetting about taxes, insurance, and other costs of doing business.

17. Mistaking the freedom of being in business for oneself for the liberty to work or not, according to whim.

What did you think about this post? Do you want to add some personal experiences to this? Make sure that you avoid these common mistakes as much as possible.