First year’s mistake

[Blue Sky Accounts]

Hi fellow business owners.

I am in the early stages of my business. I was wondering what you would do again if you could go back or what you would say was a mistake you made in your first year that helped you learn an important lesson.

 

[Search Sparkle]

I am currently in the process in setting new business too

 

[The Byre]

1. I would read all the books and articles I have written on business, but then of course, I hadn't written them, because I needed to have had experience before writing them, so I couldn't read anything I hadn't written yet. Read every book and every article on business!

2. I would not have wasted a year in rented property, but would have bought a place right from the beginning. Never rent, if at all possible!

3. I should have avoided customers who don't pay on time and customers who are more hassle than they are worth. Learn to fire the bad customer!

4. I should have fired those employees who didn't deliver on time the first time, instead of listening to excuses, in the vainglorious hope that they will improve. Idiots and lazy work-shy fools never improve, so drop them asap!

5. I would have borrowed less and saved more. The grandchildren of capital get 5% and that makes them over 300-times richer than the grandchildren of those that live on credit. Read this lot - and learn that it's all about percentages - http://www.ukbusinessforums.co.uk/articles/r-g-but-only-if-they-dont-take-it-from-you.657/

6. Just do it! Don't talk about it - do it! You want to become a movie director? Spend a few years learning about directing and the movie business, then pick up a camera and make a movie! You want to start a car franchise? Work in the business for a while, then buy a plot of land and start selling cars! You want to start a radio station, a magazine, a restaurant, an hotel, write books? Life's short! Blink and you'll have missed it! Learn the ropes and then do it!

 

[create]

I would have spent less on fixtures and fittings and more on ongoing advertising.
I would have sorted by company accounts and various other inland responsibilities before the deadline instead of ignoring it.
I would have got my pricing right from the beginning.
My business plan was garbage. I probably wouldn't have bothered.

 

[Mr D]

I should have written this business plan back then.

 

[Sundowner]

I would have charged more for my goods. When I started I was insecure and just wanted orders and wasn't making much per sale. Consequently my first £80k turnover prior to going vat registered didn't make me much money. I could have gotten started with financing my own bespoke product rangers sooner.

And that leads me on to my second point:

I would have developed my product range sooner. Breadth of range has given me the greatest growth and in the early years I was very narrow.

Third point. I didnt know it at the time but my small warehouse was stifling my growth. I was scared of over filling it and running out of space. As soon as I moved into a larger space I have found it has paid off.

Rob.