Mistakes Small Businesses Can Make
It can be incredibly difficult, in times like these when the economy isn’t exactly at its peak, to stay afloat when you’re a small business battling for your place in the market. The key is to have a set plan in place before you embark on your business journey so that, whatever troubles or obstacles you face along the way, you are ready for it.
While there are plenty of mistakes that can be made in business, some of them can be more crippling than others. It’s essential, particularly as a small business that may not have the capital behind it, to ensure these mistakes are avoided as much as possible so that you don’t run the risk of losing your business completely. Here are some of the ones that could see your business fail.
Lack of insurance
While a compensation claim isn’t exactly welcomed by any business, big or small, the chance of a small business having the capital available to fight the claim is slim. Before you even think about the claim itself, the legal fees that you have to deal with are often enough to cripple an otherwise successful business.
Make sure that, as a businessowner, you take out any of the relevant insurance that your business requires. Whether you offer a service or advice as a consultancy and you need to look into professional indemnity or you need to know more about how to get a public liability insurance quote , there are insurance policies available that would be well worth the investment.
Lack of experience
Unfortunately, many businesses can fail because of the lack of experience held by its owner. You don’t need much business experience to flourish (in fact, some businesses succeed with no experience at all), but having a business head will be a huge advantage.
From the day to day running to managing your finances and tax returns, if you don’t have a clue about what you’re doing, it could lead to downfall. Make sure that you do plenty of research and take heed of any, and all, advice given. GOV.co.uk is a good resource for start-ups.
Incorrect tax returns
It’s recommended that you use the help of a tax advisor or accountant if you can, especially around the time where you need to fill in your tax return. The paperwork can be incredibly daunting if you’re unsure of the lingo within it and, if you don’t complete a tax return properly, you could end up over (or under) paying tax when you really need to ensure its spot on.
Don’t fall into the same trap that other businessowners do. Pay attention to the advice given to you before you embark on your business journey and you will have every chance of success.
This article was written by Roxanne Wells on behalf of Hiscox, a reputable business insurance provider that can help large or small ventures to succeed. Do you need public liability insurance? Or any other type of business insurance? Apply for a quote on the Hiscox site.
