When you’re planning to start a business, you’re embarking on a journey that determines your livelihood and your ability to provide for your family. If you’re reading this article, then you likely understand the importance of what you’re doing, and for that, we give you a pat on the back!
Knowing what not to do when starting a business is just as important as taking the right steps to get it up and running. Burkes Brothers has compiled a list of mistakes that others often make so that you don’t have to suffer through them to learn about them. Keep reading and take note!
Limiting Your Liabilities to Maximize Commercial Success
With decades of business experience, Burkes Brothers understands the key factors that go into building successful businesses. We’re here to empower you with information and services designed to build up your confidence and your applied knowledge for structuring your enterprise. Start with these tips!
Don’t Use Your Own Money
We’ve written about this before, so we’ll keep it brief, but the important thing to remember is that your savings and retirement funds are a safety net. Using them to fund a business can put your family in jeopardy. Don’t risk your private assets and your entire way of life when there are plenty of lenders out in the world ready to invest in profitable ideas.
Our commercial loan services are just one of many ways to connect with investors who have spare capital available. Reach out to Burkes Brothers today to learn more!
Don’t Borrow Too Much Money
Whether you connect with an individual investor or you formally accept a loan from your bank, it’s important to have a strong understanding of exactly how much money you’re seeking. Not only will this help you know your minimum threshold to get the business off the ground, but it will also prevent you from borrowing too much money.
Too much money? you might be asking yourself, Is there such a thing?
When it comes to lending, the answer is emphatically: yes. You owe interest on the money you borrow, meaning the more money you borrow, the greater the overall interest you owe over time, and the less profits go into your bank account.
The right business plan will help you come to your investment meetings prepared with accurate information about the amount of money you’re looking to borrow. Burkes Brothers can help you design a comprehensive, strategic business plan to optimize your success.
Stretch Your Dollars
Learning to stretch your dollars without being cheap is a skill that can be built over time. Look for value rather than low cost, and consider where you can make an impact with what you’re delivering to your clientele. Investing in quality goods, real estate, and talent will help you avoid issues with production, customer retention, daily operations, and employee turnover.
Learn to Budget Well
In this vein of making your money count, borrowing more than you need can lead to other problems, like overextending your budget or overpricing yourself in unnecessary ways. You may find yourself trying to sell costly products that no one wants to buy or hiring 80K salaried employees who may not work out.
Budgeting is a skill that can be learned and built up. Start reading up on the subject for free at the library or take a course at a learning center or community college. You can also connect with other successful business owners in your area at chamber of commerce meetings, regional conventions, or industry conferences.
Don’t Limit Yourself to Branding
Whether you’re considering opening a franchise or trying to serve or sell famous brands, a recognizable name isn’t everything. This tip goes hand in hand with our recommendation: don’t pay too much for things. Learn where to find value and assess whether you can stand out by offering high-quality items that are less known. Sometimes choosing a niche is much more lucrative than being another small percentage in a crowd of businesses already offering the same items.
While we recognize that franchising can be an incredibly valuable avenue, it’s important to look for good work that won’t break the bank. If you can’t make enough profits to pay your franchising fees, then you won’t have a business and a source of income, you’ll simply have ownership of a debt.
Again, having a thorough business plan will help you think through these issues and come to a decision that sets you up for greater success.
DO Be in the Right Frame of Mind
We want to finish with a high note because, at Burkes Brothers, we know that an optimistic, forward-thinking mindset can make all the difference in the world. We’ve already written some key tips about this to help you start out on the right foot.
Understanding that every day will be its own challenge is important, but facing it with a focus on success and a motivation to meet any issues head-on will keep you going. Use your network, find good resources, and reach out for help when you need it to maintain momentum.
Customize Your Business Success Strategy
There are many paths to success, but only a few will be right for your business and service area. Our nationwide business consulting services are designed to help you evaluate your best plans of action. Take action today and plan for success when you reach out to the Burkes Brothers team for commercial loans, business planning, and more.
Discover Better Business Consultation
With plenty of resources and exceptional insights, Burkes Brothers provides business development services to entrepreneurs across the country. Based in Huntington Beach, CA, we’re prepared to work with you to construct an enterprise from the ground up. Contact us today to evaluate your business plans and commit to accomplishing your business goals.