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Report Lists Small Businesses' Greatest Mistakes
Published on Feb 25, 2011
Read 'Report Lists Small Businesses' Greatest Mistakes' at 'Time to Start Up,' the small business blog by BizFilings.
Treasury Secretary Timothy Geithner stated this week that the U.S. financial system is currently the strongest its been since before the recession, adding that improvements in banks' available assets should boost lending to small firms and hasten the economic recovery.
As conditions begin to improve, many entrepreneurs and small business owners are taking time to reflect on what has and has not worked, and a new study released this week by the insurance firm Hiscox USA addresses these concerns.
According to the Hiscox USA Small Business Survey, the top four mistakes small business owners cited they made when setting up a business are:
Underestimating monthly expenses (32 percent of respondents)
Hiring the wrong people (20 percent of respondents)
Uncertainty over how to market and sell a product (18 percent of respondents)
Not securing enough financing (18 percent of respondents).
"Cash flow, human resources, marketing and insurance issues can seem boring, but are hugely important," said Kevin Kerridge, an insurance expert at Hiscox USA. "Any professional starting their own business … has a very clear vision of the service and value they will bring to their client base."
"But, if you don't plan for the basic essentials of running a business … you could be very quickly going back to being an employee," Kerridge added.