Starting a small business can be a daunting proposition for many people because they are investing quite a bit of capital and a lot of precious time and energy. It will indeed be useful if you were to be aware of some of the common small business mistakes and take adequate precautions to avoid them.

List of Some Common Small Business Mistakes:

• Choosing the wrong legal structure for your business may affect the tax structure of your business adversely.
• Lack of funds to start the business as planned can be a very serious blunder that has to be avoided at all cost. Being undercapitalized can have serious consequences, as your business has no reserve funds to use during a slack period. Many are the businesses that have ceased to exist because of insufficient cash flow rather than a lack of profit.
• Not having a business plan or not implementing it carefully is another mistake many small business owners make. Sometimes an excellently drafted plan is wasted locked in a shelf while the business without implementation of the plan is heading towards its doom.
• Developing a product that really does not have a market. Insufficient market research and competitive analysis can contribute to this disaster.
• Not buying the infrastructure necessary to carry out the business operations without a hitch is another bad mistake. Sometimes the quality is compromised and the products need repairs or replacements, which can be costly and expensive thus neglected.
• Not establishing the target goals and objectives clearly; thus, the business loses focus. Make sure the operations are executed to achieve the target goals within a predetermined time frame.
• Not having frequent cash flow analysis and practicing bad record-keeping make it impossible to know the financial situation of the company clearly. Mismanagement of the fiscal aspect of the business has to be avoided.
• Not selecting a good business name and logo, making it hard for customers to clearly identify your name and associate it with the products or services you offer.
• Not having a strategic plan to steer your business towards success.
• Not spending enough on marketing and advertising your products can be a bad mistake, too.
• Inefficient cost estimations and under-pricing of your products or services, resulting in severe losses.
• Hiring too many or to little staff is another mistake that has to be avoided.
• Extending credit to customers without making proper credit checks is another common mistake, which can be costly and hard to overcome.M
• Spending too much on a great-looking office in a top-notch locality, causing excessive overhead which can cause you to go out of business faster than you think possible. Spend only as much as is necessary; prioritize and budget your funds