Starting a business is an unforgettable experience. It is exciting and nerve-wracking. Some things can get neglected in the rush to get started. I spoke with a few small-business owners, and I asked them: “What are two things you wish someone told you before you started your business?”
Below are some of their responses and keys on how to avoid some common pitfalls.
How much work it takes to start a small business surprises many first-time entrepreneurs.
Business/personal
Verna “Vee” Monsanto of Nina’s Upscale Salon in Hinesville said: “Being in business for yourself, you are pretty much in charge of how long and how often you work. But that does not mean you work less hours than you would working for someone else. My workdays are much longer than when I had a job, but I would not trade it for a job.
“Although I have a background in accounting, if someone stressed to me the importance of keeping your books up and keeping good records and keeping the business separate from personal, it really (would have) helped during tax season.”
Small businesses should establish a separate account for the business. Keeping a separate account will ensure that expenses are accounted for correctly.
Mixing business and personal accounts can cause a lot of unnecessary confusion and will make it hard to abide
by federal, state and local tax laws.
Separation of business and personal can also apply to time. There is a need to dedicate time specifically for the business. Mixing personal time and business time can lead to a lack of organization, which can adversely affect the business.
Time management
Abradella Sims of Divine For Purpose said: “I need to manage my time. Never cheat yourself by making your business irrelevant or something you can put off until later.”
One way to help master the monster of time is to work on time management. Keeping a schedule and a to-do list will allow new entrepreneurs to focus and stay determined.
There are a lot of long hours that go into building a client list, creating a website and promoting the business. Networking is key, and there is no quick way to establish relationships.
Many entrepreneurs fail to give their business the attention it deserves. A business is like any endeavor. It needs attention to grow. Putting off items or putting off a business until later is a big regret many small business owners have.
Different stages
Camesia “Cami” Mendoza of Wise Tax Service in Hinesville said: “Some things I wish someone had told me when I started my business: Everything doesn’t have to be obtained at once. When starting out, the excitement of venturing out on your own is intoxicating. You want your business to be the best, look the best and try to be competitive with established companies.
“It’s important to stay grounded about the stage your business is in. The truth is becoming established takes time, resources and manpower. When you are starting out, typically you wear all the hats and are the only manpower.
“Prioritize starting capital. I learned the importance of prioritizing your starting capital. Determine what resources, tools and equipment are vital to operating your business and focus your dollars there. Some expenses are simply unnecessary in the infant stages of your business.”
Patience is key for every small-business owner. Nurturing relationships with customers takes time. Building a social media presence does not happen over night, and this can be discouraging.
Not everything that is done has an immediate effect. The best thing to do is continue to network and build relationships at every opportunity. This network should extend to other small businesses in the area.
There is a lot of excitement when a business gets started. Many small business owners do not list, in order of priority, the items that are needed to start. This can lead to wasteful spending. Prioritizing along with looking for bargains will allow for smaller start-up costs.
Experience is the best teacher. These small business owners learned a lot from what they experienced. If you are interested in starting a business, take the time to talk to someone who already has one. What you learn from them will help you move forward with your plans.
Yvette Gonzalez-Smith is an accounting instructor at Savannah Technical College.