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Don’t Slip Up On These Banana Skins Running Your Company

As a business owner, it’s important to be aware that there are a lot of traps and pitfalls that you can run into. If you hit too many of these, then you will be putting your business in jeopardy. Let’s explore some of the mistakes that you should do your best to avoid.

Sinking Into Debt 

There are numerous guides online that will state quite cheerfully that debt is just a fact of life you need to accept when you are starting your new business. It is understandable why many people have this mindset. After all, the average online company still costs a few thousand to get up and running. A brick and mortar business will cost upwards of ten thousand in the first year. However, there is a difference between set up costs and debt that is continuously building that you keep sinking further into. That type of debt is a problem and it’s one that you shouldn’t just overlook. You need to be proactive at handling it the right way. For instance, you might want to think about hiring an accountant. 

The right accountant will take care of your books and ensure that you are not overspending in key areas. 

Going Over The Legal Line 

Next, you need to make sure that you are not crossing over the legal line in your business. The trouble with the law is that it’s not quite as easy to understand as most people assume. Indeed, one could argue that the law is not meant to be understood by a layperson and this includes hopeful entrepreneurs. There’s a lot of legal steps that you need to take during the initial setup of your company. This includes a file confirmation statement which must be filed at the right time. If you are worried about keeping up with all the rules and regulations then your best bet is going to be using a legal advisor. 

An expert like this will be able to keep you on the right track here and is well worth the investment that they will take. 

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Hiring The Wrong People 

You also need to make sure that you are not hiring the wrong people. Hiring the wrong people is going to lead to an absolute disaster scenario for a few reasons. First, let’s take a look at issues with churn. Employee churn often costs businesses a fortune and that’s an extra expense that you don’t want. Instead, it’s far better if you can keep your churn under control. You will be able to do this if you perfect your hiring practices. This means that you’ll get the right people for the right job every time. Specifically, you’ll find people who want to stay with your business for the long term. 

Another way to make sure that you get the right people is to use a recruitment agency. These can act as gatekeepers to the job market and will ensure that the right resumes and CVs always land on your desk for key positions. 

Cutting Costs In The Worst Areas

Cutting costs in your business is a smart move. But it’s important to make sure that you cut them in the right areas. If you end up trimming off the wrong edges, then you can weaken the position of your business and hurt the prospects of your company. So, where shouldn’t you cut costs? Well, one example to at least be wary of would be marketing. 

Marketing is a touchy subject because it can be quite expensive. Indeed, experts suggest that you should spend at least 20% of your total budget on your annual marketing campaign. That might seem like a crazy amount but it makes sense. Without the right marketing position, you are always going to struggle to push your business in the right direction and grow your audience. You also need to make sure that you avoid cheap marketing solutions that won’t provide the value you need. 

Ignoring Negative Reviews  

Finally, you should make sure that you don’t ignore negative reviews for your business, products, or services. Indeed, you need to make sure that you are tackling these head-on. It’s important to respond to them directly and show other potential customers that you want to make key improvements to your brand. 

We hope this helps you understand everything that you need to know to ensure that you don’t hit the common banana skins when running your company. If you take the right steps here, then you can ensure that your company does have a positive future. 

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