In 2021, keeping your startup business going has become more complex than ever. In addition to the financial and logistical difficulties new companies face, the pandemic has brought a whole new set of challenges to the field. The restrictions on proximity and contact for safety have forced entrepreneurs worldwide to discard their previous ideas and come up with new ones. Limiting proximity between customers and service vendors has become a new priority.
A lot of businesses today don’t know about the MSME Act. Also called the Micro, Small, and Medium Enterprises Act, this Act was enacted to help small production businesses have the financial leeway to build themselves up and have a level of freedom in decision making. To avail of its benefits, all you have to do is complete your msme registration.
Can One Mistake Kill Your Business That Easily?
Nobody’s saying that entrepreneurs aren’t allowed to make mistakes. Wherever you look, it’s impossible to grow without making mistakes. But, and this is especially true for owners of new businesses, entrepreneurs have a lot less leeway than other people. A small oversight in the business’s accounting and finances could lead to outstanding debts, debts that could be called in at the very worst times.
While your business won’t immediately die from every single mistake, it’s vital to grasp every oversight and error as an opportunity to learn something.
For example, a lot of entrepreneurs take on too much. Business owners have to prioritize their tasks, delegating what isn’t as essential and focusing on the most pressing problems. Being good at everything is a significant plus, but if you try to be great, you might end up not focusing on the problems that matter the most. Here are two examples of what can be delegated and problems that need your attention immediately:
- Items on your agenda like, say, making a package plan that combines multiple services can be safely dealt with later or even delegated to trusted subordinates.
- On the other hand, pressing problems holding up business procedures need your immediate attention. A meeting with shareholders or investors takes priority over production problems, which a subordinate can deal with just as efficiently.
5 Financial and Strategic Mistakes That Can Kill Your Business
The problems faced by every business are indeed unique. As long as you’re doing something different than other people, you’re going to encounter new issues that require inventive and inexpensive solutions. However, there are still several common mistakes that company owners make too often, doing great harm to their businesses in the process. Here are the 5 Mistakes that Kill Even the Most Promising Business:
Short Term Profit Orientation:
Too many entrepreneurs get held up with the idea of making their business profitable as soon as possible. If you don’t have a lot of financial freedom, you might end up looking for the quickest way to make money, abandoning an idea as soon as it doesn’t prove to be immediately profitable. Instead of going through multiple business ideas every day, it’s a better plan to set a long-term goal and focus on making your company reach it.
Planning Too Much:
It’s an obvious fact that you need to plan out your business idea before deploying it properly, but just like everything else, too much of it can ruin your business quite quickly. The perspective you plan from changes daily, and short-term plans rapidly need to be changed entirely or discarded altogether. Instead, affirm your commitment to your long-term goals, and keep pressing on, rather than drawing back and making a new plan at the first sign of danger.
Not Listening to Customers:
As your business grows and you get more customers, it’s essential to know why customers prefer the services you provide over others. Customer surveys help you keep on track with what customers have come to expect from you.
Not Registering for MSME Benefits:
To support smaller businesses, the Indian Govt. enacted the MSME act. The msme complete form being Micro, Small and Medium Enterprises Development (Act), this Act provides financial leeway to new businesses. You can get many subsidies, including different kinds of tax subsidies, power subsidies, and even capital investment subsidies, to reduce the financial stress on your company!
Not Having Your Documents in Order:
Documentation is the lifeblood of any company. Bills, receipts, certification, the documents you need for the certification like an udyog aadhar registration: it’s essential to have a system for adequately classifying, categorizing, and storing your business documents safely. For an example of how important they are, it’s impossible to take the benefits of registering for the MSME Act without the documents you need beforehand!
Even with all the new changes to the playing field, the basic requirements of running a business have not changed. Even in the middle of the pandemic, it’s essential to understand that your business won’t be immediately profitable and might even not be so for months! After completing your msme registration, when implementing your business plan, it’s essential to have a road map outlining the steps you need to take to give your fledgling business time to grow.