Watch Out for These 10 Common Small Business Mistakes

Opening a new business is an exhilarating and possibly daunting process. While there are countless rewards, financial and personal independence being at the top, there are common pitfalls that threaten every business owner. Below are 10 mistakes new business owners can make and how to avoid them.

1. Not knowing enough about the business you’re going into—It seems silly to say go in with your eyes open, but it does bear repeating. Don’t let your excitement be your downfall.

2. Not protecting your personal assets—You will be pouring your heart and soul into a new business, but don’t let it ruin your life or endanger your home. Consider setting up an LLC (limited liability corporation), get advice from other small business owners, and think about contacting a lawyer.

3. Not creating a unique, value-driven business—Start off on the right foot. If your business mirrors others too closely, there will be no overt reason for customers to choose you.

4. Not developing a business plan—Your business plan is the road map to where you want to go and how to get there. Do your research, get suggestions from your local small business association (SBA), or try the U.S. SBA (www.sba.gov). They’ll keep you from reinventing the wheel, and will often have information on loans/grants and one-on-one counseling.

5. Not setting the right price—Price drives the decision of whether customers contact you or not. Work with your suppliers for suggestions, look at other companies, and do your research.

6. Not changing or adapting as you go—Even though you have a road map, sometimes you need to ask for directions along the way or take a detour. Continually evaluate your business.

7. Not budgeting correctly or planning on making money right away—Don’t put all your eggs in one basket. Have another source of income or some cushion and be realistic in your expectations.

8. Not marketing consistently—Don’t lose the momentum after one good campaign. Develop a plan and stick to it.

9. Not investing in people—Don’t get caught up in the bells and whistles of the latest gadgets or schemes. Invest in quality employees. They'll always drive your business and be the face of your company.

10. Not focusing on the big picture—Don’t get overwhelmed by the day-to-day necessities. Take a step back and keep track of your priorities. Management by crisis only leads to more chaos.

Concessions are Woven into the Fabric of History

Concession carts and food stands in one form or another have been part of the human mosaic since time can remember. Street vendors once pedaled meats and breads in their small wooden makeshift shacks along the sides of dirt roads. And now the concession trailer business is pervasive in our society. Anywhere that there is a gathering or even a decent amount of foot traffic we'll find at least one food cart waiting to satisfy our need for food and drink.

We can imagine the food carts of days gone by where fruits, vegetables, wine and fish were sold as opposed to today’s fare of hot dogs, hamburgers and nachos. Wicker baskets instead of iced-down metal bins held produce. Meat was cooked on a crude rotisserie instead of on a hot dog cooker or gas-powered grill. Berries and nuts took the place of bag snacks and candy bars. And instead of popcorn makers and pizza warmers, some type of apparatus for the drying of beef to make jerky could have been in use.

It's probably safe to assume that today we have foods that are much more convenient and require much less preparation than the concession foods of old. There's no need to skin or scale when you can simply place a few hot dogs on a roller or throw a few hamburger patties on a grill. No need to peel or wash when you can simply place pre-packaged foods on a counter. Therefore, it may also be safe to conclude that the early concessionaires worked a little harder than present day vendors! But we have had time to evolve and simplify just about every facet of our lives, vending included.

The events people attended, the games they watched and the available concession fare was quite different in the days of old. But the basic concept was the same: Have food and drink available for the hungry and thirsty, and everybody profits.

Concession Business a Good Way to Supplement Income

If you're thinking about starting a business in order to supplement your income or to eventually pursue full-time, do your due diligence first. Take a look at the different types of businesses that may be on the upswing and all that goes into running your own enterprise. The slow economy doesn’t make things easy these days, but that doesn’t mean that you can’t be successful if you happen upon the right opportunity.

The concession trailer business is something to consider. In the midst of the economic slowdown, people still need to eat and will always snack at events and gatherings. If you purchase a cart and familiarize yourself with the rules and regulations surrounding the operation of a food cart, the possibility exists that you can do pretty well in this business.

Some things to consider when starting a food concession business are what you are going to need for overhead, what type of food products you are going to sell and the number of personnel you will need to employ, not to mention viable locations for your cart or trailer.


Supplies

When you’ve decided on which concession trailer you are going to purchase you will know how much equipment you can fit inside of it. A hot dog cooker and popcorn makers are standard, and you can add other items later such as nacho warmers and possibly a fryer.


Events

There are endless possibilities; however, certifications are necessary in most areas in order to operate food carts, so be aware of this as you seek out venues. Public sporting events, carnivals and festivals are good places to start. City street corners can be lucrative, but are not always easy to get permits for.

There are never any guarantees, but as you gain experience, land some good venues and start to make contacts, you could make a good living and only have to answer to one boss ... you.

Is now a good time to start your own business?

Times may be tough but that shouldn't deter you from tackling your entrepreneurial dreams. In fact many businesses have been formed in hard economic times. Think Walt Disney Co., Microsoft Corp. and Apple. Yes, they were all born out of someone taking a risk in uncertain times.

Put simply, now is good as any time to form a business entity. You just need the right idea and the ability to implement it. Some experts contend it’s never a good time or bad time to start your own business. This is because the length of time required to start up a successful business is unpredictable. For example, if the economy is booming at the time of conception, it can take a turn for the worse by the time the ink dries on the business plan. The bottom line: unless you have a crystal ball there is no way to predict the future economic climate.

Downsized and bitter? For the laid off or fired, there’s no better revenge than starting your own business. Recessions are prime times to become entrepreneurs because companies tend to cut back. That means it’s a great time to find cheap real estate and talent in a less competitive environment. There is plenty of hard-working people collecting unemployment who would jump at the opportunity to have a meaningful job again. There also tends to be more community resources available designed to help start-ups get off the ground.


The importance of the consumer cannot be underestimated in times of economic downturn. In hard times they are re-thinking the value/price proposition of products and services. There is room for new business models and for start-ups to grow quickly. And when times are better they will remain loyal to your company as they purchase all the products and services they cut out of their budget during the recession.


In short, if you have a solid idea for a business venture, go for it!

Need Help Finding Events to Work?

When you're a mobile concessionaire, it's important to get your schedule filled up with good, high traffic events. Do you know where to go and who to contact for events in your area? Over the past few years, the use of the Internet to find events has increased and the results available have improved dramatically too. Since the special events season is about to get started, we thought it would be helpful to post those links in one, central article this year so that our readers can reference them easily. Here's the list!

1. Soccer Tournament Directory - www.soccertournament.us Soccer tournaments are great events for all types of concessionaires!


2. SoftballTournaments.com - National Softball Tournament Directory. Again, softball tournaments draw large crowds of people who don't want to leave to get snacks (for fear of losing their parking space) so they will happily patronize your stand. Nothing beats shaved ice or a snow cone on a hot day at a tournament!


3. USCarnys.com - USCarny's does a great job of compiling events of all sorts by state. It's a great resource and will definitely become a favorite for you!

**The next 3 resources are very similar in nature. However, we like to list all 3 of them because at times, each of them will list an event unique just to that particular site.

1. FairsandFestivals.net


2. Festivals.com


3. FestivalNet.com - Festival Network Online offers you the ability to use their site for free, but limits some of the information you are able to view.

To get detailed information about particular events, you need to join their site using one of their membership packages. Our suggestion is to try the free approach at first and see if you think it is a viable website that will serve your needs. If so, go ahead and join. We have joined in the past and felt that it was worth it due to the events we found and participated in by using their website.

We hope you will find these links useful!

The Mistake That Can Kill Your Business

Too many times, as entrepreneurs, we get consumed with trying to do it all. We cram in one more email, one more blog post, one more sneak peek at Facebook or Twitter. We stay up late into the night tweaking one more ad, putting one more image on our website, or adding one more item to our to-do list. Sound familiar?

And pretty quickly, we go into overwhelm mode, where we’re busy putting out fires instead of believing in ourselves. We begin to crumble under the weight of our growing business, and we lose ourselves in escapism. We focus on only what has to be done today instead of looking forward to tomorrow, and we’re just relieved when our inbox finally gets to zero.

But is that what really matters most? Our inbox getting to zero? All those piddly things getting done?

No.

What matters most is to keep moving forward with our business. To block out the tidal wave of new emails, new Tweets, and “one more thing” and to remember, instead, to create every day. To bring something new into the world.

Keep These In Mind When Launching a Startup Business

These points may come across as basic, but these are the small points you should keep in mind when launching a startup business:

1. Start by thinking small and extend your thinking from there. Small and simple thinking will allow you to concentrate on what is important
   


2. Financial reward is good, but aspiring entrepreneurs should first look out for opportunities where they can learn. Allow employees to take on projects even if they don’t have the qualifications.
   


3. Don’t manage profit, but cash flow. Money in and money out should be the only two financial yardsticks that matter.
   


4. Perfection is the enemy of success (in case of startups). Speed is better than perfection.
   


5. Sell, sell and sell. Selling to everyone including business world, employees and suppliers. Sell yourself, sell your product, have a sales professional in your team.
   


6. Start NOW. Don’t wait.

Choosing the Right Name for Your Business

Picking the right name for your business can mean the difference between customer confusion and instant, profitable recognition and recollection. Some believe an oddly unique name can be the most memorable. Just remember, if you question it, mostly likely others will be confused too and you should keep it simple.

First consider what your key product is and who your target market will be. Next, think about where you want to have the most impact. Lastly, the world is becoming more connected through technology; think of key words that people would search for when looking for your specialty service.

For example, Bob’s Shop is not as memorable as Springfield’s Sweets and Popcorn. It quickly tells people where you are, what you do, and includes key search words.

Whatever you choose, do your homework before investing in a name. Nothing is worse than putting money behind a name only to find out you can’t legally use it, or having a similar business name that may confuse your customers and stop them from finding you. Plus, make sure your name is prominent in all your marketing. From traditional pieces to giveaways—for the example above, Bob could give away sample packs, suckers, and scratch & sniff stickers.

The Freedom of Running your own Business

Opening your own business is seen by many as part of the American Dream. As an entrepreneur, how well you succeed often comes down to how hard you work. Your earnings potential is largely influenced by what you do and how you choose to run your concession business. In many entrepreneurial enterprises, you end up becoming married to your business and have no time to enjoy or experience life outside of work. In the concessions business, you get to set your own schedule and work at your own pace. You can choose to do as many or as few events as wanted or operate during as many or as few sporting events as you think are necessary. What can be a wonderful thing about being a concessionaire is that you are not relying on other people in your company to produce revenue for you and you do not have to operate on any standard work schedule. Depending on what geographical region you operate in, the concession season may be condensed into a period of three to five months. This means that you can spend the rest of the year pursuing other ventures or just enjoying life.

How to determine if your cut out for the task of owning your own business?

I have often been asked by aspiring entrepreneurs how they can determine if they are cut out for the task. While there is not really one answer that will fit everyone, in my opinion there are some characteristics that I think most entrepreneurs have and the basic requirements are usually the same.

If you are thinking about starting a business but you're still not sure that this is the right move for you then below I have listed some questions that you should ask yourself. This will help you determine if you are willing to make the sacrifices that may be necessary for you to move yourself in the right direction. Understanding your reasons and motivation for wanting to become an entrepreneur will help you see past the romantic notions of being self employed.

Now, don't worry! This is not a test, and no one will grade you so there's no right or wrong answers to the questions. The answers will vary based on the individual, their motives, ambitions, and their personal goals. The important thing to remember is they are just guidelines for you to use to self-evaluate your readiness. This information will play a crucial role in helping you to determine if you are capable of starting and operating a business and, most importantly, if the business you have chosen suites your abilities and needs.

Please take a few minutes to answer each question.

1. Why do you start your own business?
   
2. Do you have a business in mind that you would like to start?
   
3. Do you have a passion for the business you would like to start?
   
4. If so, why have you chosen this business?
   
5. Does your current job or career leave you feeling unfilled?
   
6. Does your desire to start your own business fulfill this need?
   
7. Do you have the skills that will be necessary to make this business venture successful?
   
8. By starting your own business, do you feel that your skills will be put to better use?
   
9. If necessary are you prepared to get additional training in order to operate your business?
   
10. Are you prepared for the physical and emotional demands that starting a business will put on you?
    
11. Are you prepared to put in long hours in order to make your business successful?
    
12. Do you work well under pressure and have the ability to take projects through to completion?
    
13. Are you good at planning, organizing and making decisions?
    
14. Do you have the support of your family and friends?
    
15. How will you support yourself while trying to get your business launched?

I realize that some of these questions may be tough but they are essential questions any budding entrepreneur must ask themselves. You want to be certain that you are not lacking in any skills that can make you a liability to your business.

It's important that you are honest and open with yourself when it comes to answering these questions. Use the information to help you follow through on your strengths and take action to improve on any of your weaknesses.

Doing so will prepare you to move forward into the market analysis and start-up planning phases of your business. All of this preparation will greatly increase the likelihood of you being successful in whatever endeavor you choose!