It seems like wherever you look nowadays, there are business start-ups popping up in new niches and industries at an alarming rate. While this new wave of entrepreneurship is good news for worldwide economies, business start-ups could soon find themselves in hot water by making one of the rookie mistakes below. Alas, if business start-ups want to ensure their success, they should hire specialised business start-up accountants who can enable them to grow sustainably and within their means.
So, without further ado, here are the most common mistakes made by start-up businesses:
If you’re not organised, you’re going to lose track of your growing business very quickly. It is recommended to create a daily task list which organises your important tasks by their level of priority, allowing you to take care of everyday matters in your company without losing track of everything. If you’re looking for someone to help you organise your accounts and tax bill with HMRC, the small business accountants team here at Pearl are happy to help.
Not understanding your target market
There’s a reason that companies sink so much into market research – just because you and your friends use a product/service, doesn’t necessarily mean that everyone in your demographic will. Too many people launch business start-ups aimed at people with similar interests to themselves and their friends, not comprehending that the rest of the market may not slot into their preconceived notions. Before you go trying to sell your product to people, make sure you know who wants your product in the first place.
Failing to delegate tasks
Business start-ups are usually run by people who like to manage every aspect of their business – some might call them micromanagers or control freaks. As business start-ups begin to grow, however, it becomes important for leaders to learn how to delegate tasks to their team, making it easier for them to oversee the general direction of the company and come up with new ways to grow it in the near future while the staff takes care of the busywork.
You might think that the relationships with your clients are bulletproof, but without written contracts and agreements in place to solidify the relationship, the winds of change can bring your business to a halt. No matter how long-term you have been partners with someone, be sure to lure them into a fair contract which makes the relationship more stable and reliable for your growing company.
Paying yourself the wrong amount
Of course, you always have to pay yourself a salary, but it might be tricky to figure out exactly how much is the right amount. It may be a good idea, for example, to pay yourself a percentage of your business’s start-up’s revenue, allowing your salary to ebb and flow with the company’s growth. Paying yourself too much or too little could throw your books into disarray.
Here at Pearl Accountants, we thrive on helping start-up businesses to succeed with our specialised start-up accountants service. We can help various business start-ups to bookkeep properly, file their tax returns with HMRC, and grow at a sustainable rate.
Shoaib Aslam is the co-founder of Pearl Chartered Accountants, a UK-based chartered accountancy firm that has multiple locations across London. They are experts in helping startups and established businesses with all aspects of growth, strategy, scaling up, accounting and tax planning. Connect with him on LinkedIn, Twitter, Facebook or Instagram.