Mistakes that hinder the development of small businesses
Posted: Wed Jan 22, 2025 6:34 am
Let's take a closer look at what can hinder the effective development of small businesses. In other words, what points should be given special attention.
Formal approach to organizational issues
Many entrepreneurs tend to ignore the importance of the stage of registering a business and filling out important constituent documents. Subsequently, such an attitude can cause various problems. The most common mistakes include the following:
the business plan is downloaded from the Internet and is not drawn up based on the realities of a specific industry, region, available resources and possible risks;
OKVED codes specified in mom database the Unified State Register of Legal Entities do not correspond to the actual activity. For counterparties, this may serve as a sign of unreliability;
the absence of a license required in accordance with Article 12 of Federal Law No. 99-FZ of May 4, 2011, entails administrative punishment for the business owner;
Carelessness with documents can result in financial and image losses.
Disrespect for laws
The Labor Code regulates the issues of employee registration, salary payment terms, compliance with the operating mode, provision of vacations and days off. Failure to comply with the requirements leads to problems with the State Labor Inspectorate, monetary fines, inspections, and even suspension of operations.
The Law of March 13, 2006 No. 38-FZ "On Advertising" contains many points that a beginning entrepreneur cannot understand without the help of specialists. Incorrect comparison with competitors, use of a trademark similar to one already registered, incorrect placement of signs - all this can become a reason for a lawsuit or penalties.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
You need to know your rights
No business can do without communication with representatives of regulatory authorities. Readiness for inspections consists not only in compliance with requirements, but also in knowledge of the regulations that govern them.
An entrepreneur must clearly understand what documents he must provide, what premises he must allow inspectors into, and what he can do solely at his own discretion. It is necessary to know the limits of authority of employees of various regulatory bodies and ensure that subordinates have such information.
Mistakes that hinder the development of small businesses
Work for yourself, not for people
Many entrepreneurs start their own business because they are really passionate about an idea. They understand the nuances of technology very well, set up the production of a decent product, but cannot convey its value to the audience. It is necessary to study the target audience before registering a small business. It is important to understand who the company will work for, whose needs it will be able to satisfy, who is willing to pay for its goods or services.
The lack of this information leads to the product selling very poorly, the business owner suffers losses and gradually becomes disappointed in his undertaking. But you just need to figure out what the problem is. Most likely, it is that the needs of the target audience are not taken into account or the pricing policy is poorly thought out.
Lack of an action plan
Another common mistake of beginning entrepreneurs is to rely entirely on their intuition, to take the next steps intuitively. It is not necessary to order a detailed business plan from professionals (although if you need a loan to develop a small business, you cannot do without this document). It is enough to outline the approximate costs of starting your business, record the available resources and those that will be needed for the first time, think over the sources of financing the enterprise.
Not everyone can decide to run a business. An entrepreneur is a person who is not afraid to take responsibility for himself and his employees, who dives headlong into the life of his company, does not give up in the face of any troubles and quickly finds ways out of problematic situations.
Formal approach to organizational issues
Many entrepreneurs tend to ignore the importance of the stage of registering a business and filling out important constituent documents. Subsequently, such an attitude can cause various problems. The most common mistakes include the following:
the business plan is downloaded from the Internet and is not drawn up based on the realities of a specific industry, region, available resources and possible risks;
OKVED codes specified in mom database the Unified State Register of Legal Entities do not correspond to the actual activity. For counterparties, this may serve as a sign of unreliability;
the absence of a license required in accordance with Article 12 of Federal Law No. 99-FZ of May 4, 2011, entails administrative punishment for the business owner;
Carelessness with documents can result in financial and image losses.
Disrespect for laws
The Labor Code regulates the issues of employee registration, salary payment terms, compliance with the operating mode, provision of vacations and days off. Failure to comply with the requirements leads to problems with the State Labor Inspectorate, monetary fines, inspections, and even suspension of operations.
The Law of March 13, 2006 No. 38-FZ "On Advertising" contains many points that a beginning entrepreneur cannot understand without the help of specialists. Incorrect comparison with competitors, use of a trademark similar to one already registered, incorrect placement of signs - all this can become a reason for a lawsuit or penalties.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
You need to know your rights
No business can do without communication with representatives of regulatory authorities. Readiness for inspections consists not only in compliance with requirements, but also in knowledge of the regulations that govern them.
An entrepreneur must clearly understand what documents he must provide, what premises he must allow inspectors into, and what he can do solely at his own discretion. It is necessary to know the limits of authority of employees of various regulatory bodies and ensure that subordinates have such information.
Mistakes that hinder the development of small businesses
Work for yourself, not for people
Many entrepreneurs start their own business because they are really passionate about an idea. They understand the nuances of technology very well, set up the production of a decent product, but cannot convey its value to the audience. It is necessary to study the target audience before registering a small business. It is important to understand who the company will work for, whose needs it will be able to satisfy, who is willing to pay for its goods or services.
The lack of this information leads to the product selling very poorly, the business owner suffers losses and gradually becomes disappointed in his undertaking. But you just need to figure out what the problem is. Most likely, it is that the needs of the target audience are not taken into account or the pricing policy is poorly thought out.
Lack of an action plan
Another common mistake of beginning entrepreneurs is to rely entirely on their intuition, to take the next steps intuitively. It is not necessary to order a detailed business plan from professionals (although if you need a loan to develop a small business, you cannot do without this document). It is enough to outline the approximate costs of starting your business, record the available resources and those that will be needed for the first time, think over the sources of financing the enterprise.
Not everyone can decide to run a business. An entrepreneur is a person who is not afraid to take responsibility for himself and his employees, who dives headlong into the life of his company, does not give up in the face of any troubles and quickly finds ways out of problematic situations.