10 Mistakes Made By The Newly Self-Employed

by on November 22, 2010

Have you ever dreamed of starting your very own business, realizing your own ideas and implementing your own creativity? Do you wish to be your very own boss and have no superior who limits you in developing your own, brilliant ideas? Do you think you have the potential to come up with a very new and promising business plan? In case you deeply identify with previous questions you should simply try to make it happen. Scared? Here are ten helpful advices on things you never do while leading your own business.

1. Never make Sales to the wrong Clients

Although high sales will maximize your revenues and increase your final profit do not try to make sales at any cost. It is never a good idea to sell products to clients that are not in need of them such as your family members or personal friends.

In case clients are suspiciously undecided about your products or the value of hiring your company might indicate that they lack financial means to invest in your business. They might further miss trust in your company or clear guidelines from their own enterprise. Do not hesitate to say no to a client that is suspicious to you because it might result in trouble rather than profit. Better spend your time on strengthening your business ties with your reliable customers and invest your whole energy on satisfying them.

2. Never make too high expenditures

You should always think carefully about the necessity of any investments, especially at the start of your business when the financial capabilities are limited. Always keep in mind that money to spend must at the same time be earned. You should put the focus on the quality of your services or products not on a fancy outer appearance of your business. Be patient because as soon as your business is liquidized you might invest in further projects.

3. Never make too low expenditures

Do not try to save money at any costs as you could limit your company’s efficiency by not investing in needed progress. Again, make well-informed decisions on investments that could potentially maximize your revenues and concentrate mainly on expenditures that accelerate the quality of your product or service on offer.

4. Never give out misleading Information

It is never a good idea to give misleading or even false information to potential clients as they will eventually find out in the future. If you for instance started a one-man business, do not talk about ‘the team’, ‘us’ or ‘we’ as this would mislead your customers. If you refer to yourself as ‘I’ it might build up trust and guarantees that you alone are responsible for offers you make and their implementation. You should also never pretend to be higher skilled or better educated in a field than you really are.

5. Never assume that a signed contract is binding

In most of the cases, a contract seals a business deal and guarantees safety for both sides. Nevertheless, often companies drop out of contracts for several reasons. As long as you don’t have the time, money and nerves to initiate a lawsuit, they will eventually get away with it. Try to maintain good business relationships that are build on trust and reliability in each other’s commitments, tasks and responsibilities. In highly competitive markets, do not rely 100% on neither spoken or written words as they might not mean anything if a potential client in the end turns his back on you and towards your competitors.

6. Never suppress your intuition

Although businesses are heavily based on reasonable, well-informed and strategically calculated decisions, always listen to your intuition before signing a contract. As business is conducted by human beings, who besides being rational base decisions on emotions and feelings, it is never recommendable to leave the latter out completely.

This implies for every business man to develop good knowledge of human nature in order to predict choices made by their business partners. It also contributes in maintaining particular relationships with clients and cooperators. Nonetheless, be aware of the fact that humans can never be fully predictable and so can’t business.

7. Never exaggerate formality

Although you might maintain a certain standard of formality in specific business sectors, never forget that good deals are based on good business relationships, founded in positive human-to-human relations. Ideally such relations might even represent friendships.

Always pay attention to the situation of your industry as for example in the computer gaming business informal, friendly appeals are appreciated over stiff and distanced approaches. Put traces of your own personality and sense of humor into addressing clients and partner companies.

8. Never deny your personality

Your very own personality even with all the quirks and peculiarities brought you to the position of being the boss of your very own business. Don’t try to be somebody else now you are in charge of more responsibility and contact to clients. It is recommended to be confident about your persona and remind yourself that your personality resembles all the strengths that brought you there.

9. Never stop focusing on value improvement

Although your business might already be highly successful, showing high revenues, it is always recommended to conduct quality checks on your products and services. Do not establish arrogance and take even minor feedback very seriously in order to maintain sustainability in the long run and keep the quality standards high. Try to always have in mind what kind of value and quality you are aiming to distribute.

10. Never stop improving

Be constantly aware of not only value creation but expenditures and revenues as well as cost effectiveness and all factors that surround your business. Especially in case of success, businessmen tend to forget to regularly check on the effectiveness of existing methods comparing them to new market developments. Re-optimize patterns and methods from time to time to potentially safe costs, money and time. Even try to introduce automated data documentation and make sure to track service performance data.

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