Mistakes in Business Start-Up - Research Proposal Example

Business mistakes al affiliation Business mistakes With mistakes being part of the day to day living, business persons are likely to engage themselves in mistakes that end up extremely costly for the business. In as much the business persons are always cautioned against engaging in business without considerations, a great percentage of them end up making huge mistakes in business life. Butcher (2012) defines business mistakes as slip-ups conducted by businessmen as a result of poor judgment. He continues to argue that persons will always fail in their businesses, if they engage in business without proper decision making. With the urge to venture in business, most business persons are likely to make a lot mistakes. One of the major mistakes that business persons engage in is poor record keeping. I have, however, not been exempted for the same mistake. In the quest to start and run my own bicycle repair and sales business, I always held the perception that record keeping is only for the huge companies and businesses that earned a lot of profits in a day. In my case, I shunned the idea of daily record keeping, and at times I found myself having put no record of a day’s job. According to Pinson & Jinnet (2006), record keeping can be described as the backbone of the operation of any kind of business, no matter how minute the profits may seem. At one moment in my business, I found myself keeping substandard records that at times were recorded at the back of several exercise books in my office. In the long run, I could barely make out what records were of what date and which attendant did what. During the Christmas season when the sales were too high, it became exceedingly overwhelming for me to deal with the numerous clients jetting into the store for new bicycles or even spare parts. It is almost obvious to indicate that my store incurred huge losses which took place as a result of double sales, and improper calculations whilst making sales. Pinson & Jinnet (2006) indicate that with proper record keeping, the entrepreneurs are able to develop a sense of accomplishment in their work, unlike entrepreneurs who do not keep records. With the feeling of having let things run on their own, has been recorded to be suicidal for businesses. In the case of businesses selling products of high demand like in the case of my business during the Christmas period, with many caregivers in need of presents for the festivity, I held the opinion that I did not manage the business right from the onset. With improper records, I could not set the right price for the peak season, and it is in the same season that my business went to its deathbed. All entrepreneurs must be quick to detect any signs of business failure, which would automatically take them back to the basics of record keeping. If the routine is given a chance to thrive, then the business stands a first class chance to collapse completely. Amster (2007) also points out, that the success of a small business will always be jeopardized if the culture of record keeping has not been nurtured at an early stage whist venturing into the business. On another hand, Amster (2007) indicates that a great percentage of businessmen assume that records can be easily be memorized, not considering the fact that all business always have good days of high sales. This very case happened in my situation, where I perceived my business as a pass time activity, for my love for bicycles. With the overwhelming sales, my ‘pass time activity’ ended up costing a lot of funds. Had I kept proper records, I would not have incurred losses and I would also have enjoyed my job, with profits on the side. My being out of the market has its roots in improper record keeping, and since I could not manage paying my employees, my business had to close down. Furthermore, Pinson (2007) indicates that it is of great importance that entrepreneurs evaluate the amount of efforts they put in the business which can only be calculated by the record of the business. In this case, it is validated to argue that all entrepreneurs must have the mindset that the success of the business lies in their ability to solve their record issues in the business. The achievements of the business ought to be recorded, as well as the failures of the same, if the entrepreneur has to have a clear direction of the business trend. Most entrepreneurs do not have the time to plan and develop their businesses; thus, end up having poor records on their business. This is evident in my case, as I was more geared into pleasing my clients, rather than setting strategic goals, which can only be traced and followed up through record keeping. Being short of time to update record has cost a lot of entrepreneurs their jobs. Yet another reason that caused this business market is starting the business with the perception that the presence of customers will lead to my automatic success. It is quite evident that the success of the business cannot be confined to singular aspects, since all aspects of a business are intertwined- marketing cannot be alienated from financial segments and vice versa. My foundation of the bicycle repair business with the clients on my mind cost me a great deal. The customers became my strengths and weaknesses, at the same time. The more they came into the business, the more calculations were required, which were poorly done. Conclusively, just like Taylor (2003) emphasizes, it is palpable that all businesses cannot survive without the inclusion of proper record keeping, the business is bound to fail just like can be borrowed from my experience. Entrepreneurs must always be keen to maintain the basics of the foundation of a business, amongst them well updated records, no matter how small the business may appear. References Amster, I., 2007. Record Keeping in Business. New York: Read Books. Butcher, K., 2012. 20 Most Common Trading Mistakes: And How You Can Avoid Them. New York: John Wiley & Sons. Pinson, L., & Jinnet, J., 2006. Steps to Small Business Start-Up. New York: Kaplan Publishing. Pinson, L., 2007. Keeping the Books: Basic Recordkeeping And Accounting for the Successful Small Business. New York: Kaplan Publishing. Taylor, P., 2003. Book-keeping & accounting for the small business: how to keep the books and maintain financial control over your business. London: How To Books Ltd. Read More