4 mistakes all new companies must avoid
Whether you’re launching an automotive business or any other type of company, and you’ve got a big challenge on your hands. Starting an enterprise from scratch isn’t easy and if you’re to achieve the success you’re after, case you’ll need to be shrewd in your planning. To help you along the way, pills here are four mistakes all new firms should avoid.
- Not purchasing suitable insurance
Money may be tight when you’re getting your new business off the ground, so you might be looking for ways to keep your spending down. However, one area you can’t afford to skimp on is insurance. If you don’t have suitable cover in place, you could put your long-term finances in jeopardy and you may even risk breaking the law. There are certain forms of financial protection that all companies are required to have. For example, if you have staff members, you must take out an employers’ liability policy. As specialist broker chill.ie states, this covers you if you become legally liable to your personnel for illness, injury, death, damages or costs that occurred during the course of their work for you. If you don’t have this insurance, you risk incurring fines. Similarly, if your company uses cars or other vehicles, you’ll need to have a minimum of third party motor cover in place.
There are also a variety of non-mandatory forms of cover that you may benefit from taking out, ranging from property insurance to business interruption protection and legal expenses policies. It’s worth putting plenty of thought into the types of protection your business needs.
- Failing to get your finances in order
Another faux pas to avoid is failing to get your company’s finances in order. All too often, business plans are overly optimistic in terms of both costs and revenue. You need to make sure you secure sufficient funds to give your new firm a fighting chance, and it’s vital that you keep your costs down. As part of this, you’ll have to differentiate between what’s essential and what’s simply preferable for your firm. For example, a spacious business premises in a prime location might seem appealing, but it could put too much strain on your budget. Finding an inexpensive base to work from and saving money by buying used where possible and getting competitive deals from suppliers will help you stretch your money further.
- Taking on new staff too quickly
Another error to watch out for is hiring new staff members too quickly. It can be tempting to take on extra personnel, especially when your workload starts to grow. If you rush this process though, you could end up spending far too much on your payroll. It’s vital that you take a measured approach to bringing new workers on board, and make sure you have clearly defined roles to fill before you start advertising posts.
- Rushing the product development process
In your haste to start turning a profit, you might be tempted to start selling your goods or services as soon as possible. However, rushing the product development process can be a big mistake. To avoid problems further down the line, it’s necessary to spend sufficient time and money testing and refining your company’s offerings and making sure they meet a genuine consumer need. Testing prototypes, conducting consumer surveys, staging focus groups and researching your competitors can all help you to refine and improve your products or services.
By avoiding errors like these, you can increase your chances of securing long-term success for your company.