It always surprises me when potential business owners establish their new business without doing sufficient research into the industry. The requirements for a successful business are different for every industry. You need to research these requirements and make sure that you understand what will be required to succeed.
The smaller your budget the more carefully you should consider the requirements before you invest your hard earned dollars in a new venture. Failure to do your due diligence is extremely costly. Generally, once you plunge in, the business consumes your energy and, making changes are quite difficult.
Here are some common mistakes by business owners that we encounter:
1. Signing the contract to acquire a new business before seeking professional advice;
2. Not having the minimum qualifications for the new business;
3. Misunderstanding the basic financial metrics for the industry
4. Not reading the lease and contracts of the business;
5. Lack of a realistic business plan;
6. Lack of working capital after establishing the business;
7. Incorrect or inappropriate business structure;
8. No marketing and business development plan with signpost to evaluate progress;
9. No exit strategy;
10. Slow response to obvious signals of serious problems.
At ASR Partners we are business owners who have experience in assisting small businesses avoid the common mistakes. We can assist you evaluate your acquisition, develop your plans and take action when things do not turn out as expected.