When you’re starting out you tend to make a lot of decisions based on friends recommendations, Google searching, even strangers you meet. It seems that everyone has an opinion on almost every topic, and when you start up your own business, there definitely is no shortage of advice – or maybe there is and that is how we end up in situations we get into.
10 Really BAD Ideas When Starting a Business
#1: Pick a Bad Website Host
Even though George up the road offers hosting, doesn’t mean it’s a good idea. Find a reputable provider that has people up at 2am to monitor client web sites, not because they are surfing the net, but because it’s their job! One of my favorite hosts is Hostgator.
#2: Split Email from Hosting
If you use GoDaddy, you’ve seen the offer for free email hosting, or upgraded email hosting. Why? Most hosts provide free, unlimited email hosting. There is no need to have it split between multiple service providers. And guess what? If you do ever have to move it, keeping it together makes it so much easier to manage.
#3: Hiring Friends
It’s easy to have friends offer to help you out when you first start up, even family, but unless you can truly make it a professional relationship where there is a commitment on both sides, most of the time it may cause a lot more trouble than doing it yourself. Hiring friends can be a great opportunity for both of you, but set the boundaries and expectations first.
#4: Quick Invoices
With services like Freshbooks, there is really no excuse not to have a professional invoice. Not only that, but if you’re doing an invoice, you will eventually need to track it!
#5: Do-it-Yourself Taxes
Although doing it yourself sounds cheap (and it is), there are a number of accountants out there who specialize in small/home businesses and can really help you to identify the tax breaks you are entitled to (a few of which would be surprise you). So don’t cheap out and do it yourself. Get professional advice and see where you can save on your tax bill, at least in the first year.
#6: Go at it All Alone
You’re not alone – especially if you’re online. Get out there, join a group, ask questions. It’s really one of the best business building activities you can do, not only for your business, but for your sanity too.
#7: Be Casual
Although your business may start out as a hobby or fun thing to do, once it takes off, you will need to ensure that you have your systems in place to deal with the growth. Taking a casual approach can be a great management style; however, when you start building your business, treat it as a serious endeavor. If you’re not normally one to take things seriously, then that may be the right time to look for a partner who is interested in that area.
#8: No Childcare
Most of us stayed home to raise our little ones and soon became lured in by the call of entrepreneurship. After you’ve had a few meetings in the corner of your bathroom to try to avoid the household noise and neglected a few too many dirty diapers, you may start to realize that what started out as a dream to be at home has transformed into the reality of running a business. You will either want to adjust your hours and life to accommodate your entrepreneurial lifestyle or make a decision to bring in someone to help you manage the household duties and help you with the kids (it’s not a bad thing).
#9: Use a Personal Email Address
Really? Do you take someone seriously when you see it’s their family email? There is really no excuse, even a gmail address associated with your company is better than sending out from a family email address.
#10: Separate Services
As many options as there are out there, it’s easy to get overwhelmed, so you can easily start to understand how you might have a provider for a newsletter service, one for your shopping cart, another for an affiliate program, and yet more for contact management, project management, social media management…and the list goes on. Look seriously at the services you’re signing up for first. See how far they can be extended and if they’ll be a good fit for you as you expand. 1ShoppingCart/Cartville is a great example of an affordable service that provides a level for autoresponders & newsletters, then moves up to shopping cart function (all integrated), and then even into affiliate management (again all integrated with your original list).
And a bonus BIG BAD idea when it comes to web:
Get Locked Down
As with anything, it’s all too easy to get very dependent on one person or system. A website can be a great combination of an example of both. If your web developer starts his or her sentences with a quote for additional add-ons, or limits the access and accessibility of your site, then stay far away. There are so many options and platforms out there now, that there is no reason that you should not be able to move web developers, and hosting companies if you so choose. The investment you made into the code developed should be work-able enough to other developers that you can ensure that your website will live on, even if your relationship with your developer doesn’t.
Have you already run across one of these ideas, or have your own BIG BAD idea you want to share?
3 Comments
Great article! The other one I would add to that is make sure your domain name has your name as one of the administrative contacts. I’ve seen many small business owners bend over backwards (while jumping through hoops) to gain control of it.
That’s a very good one! Always a good idea to keep your domain name in your own management. Signing up through GoDaddy is just too easy not to and the issues I’ve seen with asking someone else to relinquish control.
I really enjoyed your post, and I think all your points are important. Another bad idea I would add is Not Learning to Read and Understand Financial Statements. Especially if you decide to have someone else do your books. I meet a lot of people who don’t understand where their money is coming from or going to, and they don’t know if they have money leaks or what their bottom line is.