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Thursday, November 06, 2008

Small Business Realities - Three Common Mistakes Business Owners Make

If you're a home business owner and feel like you're priorities are scattered and you can't focus on anything. Then you're not alone. Many business owners feel the same way. That's because business owners have responsibilities that are above and beyond their service offering. That's just the reality of a small business. One thing you have to make sure of that you focus on the right things and avoid making mistakes. Here some common mistakes some business owners make.

 

They don't incorporate their business. This is imperative for any small home business owner. Incorporating helps you draw the line in the sand between your business and your personal assets. This is imperative when it comes to liability limits. If you maintain the corporation correctly, your liability is limited to your business assets and you have a better chance of saving your personal assets.

 

Another mistake many new business owners make is they don't have any focus for their business offering at all. When some people start their own business, they have a mind set that you can be everything to everybody. This is a horrible mindset to have you must avoid that thought process at all costs. In other words, do one thing and do it well. For example, if you perform data conversions on medical data, then your offering should include database and reporting services for medical providers. Offering other services may saturate your business offering to the point where prospects don't know what you're business offers. The best time to start offering more services after you build a stream of income for your business.

 

Finally the last mistake most business owners make is that they don't have access to money. While we all know money is scarce, it's even worse for a small business owner. Here's someting to consider.

 

Let's say you're a full time consultant and you get paid once a month from your client. Usually it goes like this. We pay our personal expenses (i.e. the mortgage, car payment, expenses and kids activities). Then we pay our business expenses and make purchases to support our projects. Unless you have access to a lot of money, you won't have money until your business gets paid again. What do you do if you need to make a critical purchase for your business? The solution is building your business credit.

 

Establishing good business credit increases your businesses purchasing power. It also helps you focus on providing service for your clients. Having access to money (whether it be cash or using a business credit card) eliminates the worry of unexpected purchases and allows you to focus on your clients. That should be a top priority for any successful home business.

 

If you want to know how to establish good business credit, then go to our web site at http://www.buildingmybusinesscredit.com.  You'll learn all you need to know about how to build and establish good credit for small business.

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