Stop and Read This Before You Start Your Small Business

Guest Post from Amy Collett, BizWell

Image via Pexels

As a budding business owner in New York City, you can set yourself up for success if you follow a few rules and avoid making the same mistakes many startups make. Instead of cutting corners, prepare thoroughly for this new venture. Here are a few pitfalls to avoid. 

Not Having a Business and Marketing Plan

Your small business will have a better chance of thriving if you develop a business plan that provides a clear vision of what you hope to accomplish, how you will achieve it, and when it will happen. By doing so, investors and partners will be more likely to be interested in your idea, whether it’s based around products or services.

With approximately 220,000 businesses located in NYC, it’s important to make yours stand out. Create a go-to-marketing strategy template that can help keep everything on track for a product release. Using a pre-made go-to-market strategy template can help you streamline the entire process instead of creating your own from scratch. Expecting your product or service to speak for itself as a new business owner is a pipe dream. 

Not Taking Advantage of Technology

Small businesses have a lot to gain from technology since it can make things run smoothly and boost profits. The use of inventory management software, project management platforms, cybersecurity protection, and cost savings can benefit your business. Other benefits of technology for your business include: 

  • Communication with customers:  Your customers can get information about your business online 24/7 through FAQs on your website. In turn, this facilitates smooth communication between your business and the public.
  • The efficiency of operations: Technology can help you better understand cash flow needs and save you time and space. Meetings can be held online with tools like Zoom and Skype rather than renting a physical space.
  • Security: Data protection and client security are vital in any industry. Make sure you invest in solutions that increase security and improve operations.

Choosing the Wrong Type of Business Entity

The wrong business entity can have a significant impact on your business as you could end up with additional taxes or be liable for issues with your business. Consider the following:

  • Business creation and ongoing costs: Partnerships are typically the simplest to set up, but LLCs come a close second. Corporations require more paperwork and filings.   
  • Indemnification: Consider your assets when choosing a business structure. LLPs and LLCs are better options for securing your private assets than sole proprietorships because they separate your business from you. 
  • Taxes: Corporations are often the most tax-efficient, depending on how you structure them, but LLCs are close behind. 

Underpricing

One of the biggest mistakes new entrepreneurs make when launching a new product is underpricing. If you underprice, you won’t make money no matter how hard you work. Research your target market to determine a suitable price.

Setting Up a Business

Running a business requires a lot of groundwork and needs careful thought, from creating a business plan to choosing the right structure.  

If you have any questions consider contacting Marissa Pick for digital marketing help from the social media evangelist herself.

Amy Collett is creator of Biz Well, a website that helps professionals and entrepreneurs build and strengthen their personal brand.

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