[Conny Westh]

Ten Mistakes Business Owners Make... and How You Can Avoid Them

by Cory Johnson, The Company Corporation®

Whether you've just decided to start a business or have operated your company for years, running a business presents many challenges. Avoid the pitfalls by planning ahead and taking steps to avoid the common mistakes many business owners make, such as:

• * Thinking your business is too small to incorporate. All business owners can benefit from the opportunity to separate and protect their personal assets from business debts. Even the smallest company can incorporate or form an LLC.
  
  * Failing to satisfy licensing requirements. Don't forget about business licenses, permits, and tax registrations. Many states, counties, and cities have different licensing requirements.
  
  * Not being passionate about your product or service. In short, you should love what you do. You'll find it tougher to stay motivated if you don't believe in your business.
  
  * Not budgeting enough money for advertising costs. Business owners frequently fail to set aside adequate funds for advertising. You'll need to take the initiative to find new customers.
  
  * Sticking too closely to the plan. Every company needs a sound business plan, but don't write yours in stone. Too many business owners fail to seek out opportunities for improvement and miss exciting chances to grow.
  
  * Neglecting existing customers. Every business owner wants their enterprise to keep growing. Ensure that you go above and beyond with your existing customers so that the most powerful advertisement (word of mouth) stays on your side. Think of your loyal customers as your biggest asset.
  
  * Relying too heavily on your early projections. Make sure that your business plan takes into account any unforeseen circumstances. Relying only on a successful outcome could backfire.
  
  * Taking on too much. Leadership demands delegating responsibility. Let others help you reach your business goals. By delegating tasks, you'll work more efficiently on the projects you've saved for yourself.
  
  * Not setting your business apart from the competition. By emulating an existing business model, you risk making your business forgettable. Instead, actively make your product or service distinct from your competition.
  
  * Commingling funds. Don't use business funds for personal expenses or vice versa. Once you blur the line between your business and personal identity, you may have trouble establishing and maintaining the proper boundaries.

Avoiding these and other pitfalls should help you maximize your chance at business success.

The Company Corporation is a service company and does not provide legal or financial advice. Our services and the articles contained in the TCC Business Builder E-Newsletter are not the substitute for advice from a licensed attorney or accountant. We suggest that you consult an attorney or accountant for professional legal or financial advice.

Källa: http://www.incorporate.com/Jul2008Newslett...usinessMistakes