Starting a small business is always a challenge and you can avoid mistakes others have made by simply avoiding three common problem areas.

Mismanagement is seen by Dun and Bradstreet as the number one reason businesses fail. Since managing time, working with people and organizing activities is your primary responsibility as a professional Personal Assistant; you are already ahead of many failed entrepreneurs.

The first step on the path of mismanagement is poor record keeping. You must have a business plan and review it often in connection with your financial records. This is where you will know immediately if you are failing at pricing your services. In order to be profitable you have to know how much to charge in relation to your time and expenses. Good record keeping will tell you what areas your expenses fall under and how much time each service requires.

In order to maintain good records, you will need to hire the right experts. Your CPA should be familiar with the needs of a small business, willing to work with you in setting up your files and proficient in taxes. An attorney will help guide you through the records needed to satisfy government regulations and other rules. If you cannot afford this, perhaps you can barter your assistance as a Personal Assistant in exchange for their help. There is advantage to bartering with your professionals. You will save money and have an impressive list of competent, professionals who can recommend your business and provide references.

Another common area of failed management is the personal limitations of the owner. Do you know yourself and can you honestly evaluate yourself? You will need focus, commitment and stamina. Bosses are self-starters, not procrastinators or excuse makers. You will work long hours that will drain your physical strength and could cause emotional distress for your family. You will make hard, independent decisions under pressure. Also, you have to be a people-person who can get along with a variety of personalities. Management is stressful and difficult and not meant for everyone. However, with your knowledge and experience, combined with your training as a Personal Assistant, you will know how to work gracefully with this stress in order to succeed.

The next most likely area to trip up a business owner is inadequate or wasteful use of capital. Please don’t let your business ego fail your street smarts. You have a huge advantage because you can start your business from home instead of investing in a prestigious address with showy office furniture. Don’t tie all your new income to servicing unnecessary debt. High fixed debt can quickly sink any business. Meet your clients at their offices or at the nearest coffee shop. Hire an answering service, not a receptionist. Save your business money for business and don’t spend it on new cars and clothes for the owner.

Few businesses are immediately profitable and you must have income for your essentials. Many people start their new business on the side and keep their full time jobs until their business provides enough income to replace their full time salary. Few suppliers will grant credit to a new venture. Some of your new clients will be slow pays and sadly, some will never pay at all. These are also reasons for maintaining good financial records. Your decisions will be based on your bottom line and you cannot risk a false reading due to poor reporting.

Finally, marketing will make or break you. This is where you have to study and research your market area or you risk aiming your efforts at the wrong people, offering services already flooding the area or underbidding your company. Your competitors are doing this research, even if you are not.

If you just cannot sell, just cannot market yourself, then you need help. You will need money to pay professionals to do this for you. The nicest, most competent person alive will not survive in any business if no one knows they exist. Remember, we talked earlier about hiring the right experts to help you succeed. This is another area where you can barter your services in exchange for expert assistance.

Personal Assistants are badly needed in our pressed-for-time world and you have a good opportunity to grow your own successful business. Following these suggestions will help increase your chances for success and allow you to enjoy every moment of your new venture.

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