In this post we have a look at a few common points small business owners wish they had known to avoid slip ups…
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“If only I’d known!” Real mistakes from real small business owners
Whether you’re new to being self-employed or you’re very experienced, mistakes are an inevitable part of life as a small business owner or freelancer. They can be time-consuming, stressful and embarrassing but mistakes also provide an opportunity for us to learn and grow. We asked our network of superstar small business owners to tell us about their biggest mistakes and what they’ve learned from them.
Mistake 1: rushing into an unfruitful business relationship
When it comes to working with suppliers, making a poor decision about who to engage can prove costly, as Oilcanfinish Landscaping and Property Maintenance discovered. When looking for a new supplier, take some time to research all your options. Ask for recommendations from your network and seek out reviews and testimonials from the clients of the suppliers you’re particularly interested in. If appropriate, consider engaging with new suppliers on a trial or short-term basis before committing to a long-term agreement or paying a retainer fee.
Mistake 2: avoiding regular invoicing
Invoicing isn’t necessarily the most exciting task on a small business owner’s to-do list and it can be easy to let this piece of business admin slip, especially during busy periods. As Mike Watson correctly points out, though, invoicing is very important. After all, if you don’t send an invoice, you won’t get paid!
Mistake 3: neglecting to set money aside for tax
Former US President Benjamin Franklin once famously said: “In this world, nothing can be certain except death and taxes” and it’s true that as a small business owner, you have a financial responsibility to pay tax to HMRC. It’s also vital that you set enough money aside to pay your bills. Freelance web developer Philip Tomlinson shared his savvy strategy for doing this: preemptively putting roughly 25% of his earnings aside to cover future tax liabilities.
Mistake 4: making a typo
What can we say, Sophie? Mistakes happen! We hope you were able to fix the typo and that your client was able to see the funny side of the situation.