A friend of mine, that wants to start his first business, asked me the other day what are the most important things to watch out in order to avoid bankruptcy within the first year. So I came out with 10 factors you should watch out when you start your own business.
1. Watch out about the small loses you have in your company - Over 50% of the companies discover that their balance sheet is not so good as they hoped because of loses that relate with their activity, like: employees that you don`t need or unused space and equipment.
2. Lack of interest for human resources - American scientists discover that the management is so busy to maintain the profitability of the company and they neglect the human resource department. A manager should always take care of his employees, if they are unhappy they wont work as well and the team relations will disappear.
3. Building your business with your family - Don`t get me wrong, it is good to have a family business, but watch out if you hire a family member that is no so good trained as an other candidate for the position, it will drag down your business. You should forget about feelings when you discuss business.
4. Keep your files in order - If you don`t keep them in order you can have problems with the IRS, and you may scare your future clients when they see you have lost their order.
5. Costs - Don`t forget about costs. For a successful business you should always keep your costs as lower as possible. You may find out that by reducing costs, your business may become more profitable.
1. Watch out about the small loses you have in your company - Over 50% of the companies discover that their balance sheet is not so good as they hoped because of loses that relate with their activity, like: employees that you don`t need or unused space and equipment.
2. Lack of interest for human resources - American scientists discover that the management is so busy to maintain the profitability of the company and they neglect the human resource department. A manager should always take care of his employees, if they are unhappy they wont work as well and the team relations will disappear.
3. Building your business with your family - Don`t get me wrong, it is good to have a family business, but watch out if you hire a family member that is no so good trained as an other candidate for the position, it will drag down your business. You should forget about feelings when you discuss business.
4. Keep your files in order - If you don`t keep them in order you can have problems with the IRS, and you may scare your future clients when they see you have lost their order.
5. Costs - Don`t forget about costs. For a successful business you should always keep your costs as lower as possible. You may find out that by reducing costs, your business may become more profitable.
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