There are many common mistakes made by small business owners from not doing enough research to overextending yourself financially.

The first mistake made when a business is in the infant stages is not doing enough research. If you are offering a product you need to know your product. If you are offering a service make you know what you are doing. Your first client should not be your first time performing a service. Research everything! There are books in the library on starting a small business. There are many things to know and many choices to make when starting a business. Do you need a business license? Insurance? Supplies? Where and how will you advertise? Do you work from home or need a business site? What do you need to know about taxes?

The second common mistake is overextending yourself financially. Do you know you can make money? How much money do you really need to get start? Can you afford to loose this money if the business fails? Many businesses try to start too big too fast.

The third common mistake when starting a business is not maintaining accurate records. Have a separate place for business activity and records. Is there a empty room in your house? I recommend separating your home checking and business checking into 2 separate accounts. Keep a journal about what you have done each day. This is perfect for the new business owner. It is, also, a great way to keep track of expenses and mileage. Take the journal everywhere with you.

There many mistakes new small business owners make at the birth of their business. By educating yourself, starting small with little financial burden, and maintaining accurate records you can get your business up and running with confidence

Learn more about this author, Pamela Hayden.
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