For most business owners, the big question is whether they’ll be able to build a business to last. Once they figure out that their venture has legs, you could conclude that the hard work has been achieved, and that from here on out, it’s all about building more and more success. This, however, is not the case. Even when a business is doing well, there are always things that can trip the company up, and put it in a perilous situation. Below, we take a look at a few errors that could cause problems for your business, if you’re not careful.
Developing too Fast
Not all growth is good. While you might think that finding overnight success is akin to winning the lottery, it’s important to remember that…many lottery winners end up in a worse situation than the position they were in before they won. If you grow too quickly, you’ll be likely to run into cash-flow issues, production problems, and customer service problems. You’ll also run the risk of losing control of the direction of your company. So make sure that you’re growing at a steady but manageable pace, and don’t let things progress too quickly.
You’ll likely have set up your company so that it’s legally sound at the beginning, but it’s important to remember that things can change once you start finding success. You might have to pay more tax or meet other requirements once you reach a certain level of turnover or exceed a specific number of employees. Some companies don’t know when to register for gst, and end up falling foul of the law (for the record: it’s when your turnover exceeds $75,000). If you experience any changes in your business, then it’s best to check if you have to change anything legally. If you don’t, you might find that your business is in trouble with the law — and that’s never a good thing.
Hiring Poor Employees
Your business isn’t a machine that’s just progressing forward. The results are the sum of the parts, by which we mean your employees. If you have the right people on your team, then you’ll be in a strong position to move forward fluidly. But it’s important to be aware of just how much a bad employee can affect your venture. They can bring down the morale of the office, create problems with customers, or even actively rip you off. When it comes to hiring staff members, make sure you’re doing your research to ensure that they’re the right fit for your company’s culture.
Social Media Errors
We live in an age where companies are held to account, and that’s a good thing. We need businesses to know that they can’t do whatever they want and get away with it. But it does mean that companies need to be extra careful. For example, on social media. It’s best to avoid anything controversial — even if you’re just joking — since these posts can backfire and get you in hot water with the public.