Small mining businesses are an expression of the spirit of entrepreneurship. Like most national economies, Australia also relies heavily on small enterprises for job creation and innovation. Small businesses account for almost half of the employment and over a third of the production in private non-financial sector in the country. Small businesses are also fuelling most of the innovation in Australia, almost 90 per cent of businesses engaging in innovative activity are small businesses.
So how do we keep this spirit of entrepreneurship alive? By avoiding the following five common mistakes small businesses make.
1. Trying to do everything yourself: It is a misconception that a small business can be run by one person. There are usually so many different tasks that no one person can do justice to them. It is thus necessary to put in place a team with a varied nature of skills and competencies. One must also consider whether some of the skills can be outsourced. This is necessary with regard to legal expertise. Steinpag Commercial Mining Lawyers are adept at seeing the loopholes and working out the best deal for you.
2. Not having a robust business plan: Every small business must have a business plan. Preparing a business plan will ensure that the promoter pays attention to the operational and financial objectives of the business. To be robust a business plan must include an industry overview; market analysis for the product / service being offered by the business; an analysis of the direct and indirect competitors; a marketing plan; a management plan; an operating plan; and a financial plan.
3. Not giving importance to business research: Prior to starting a business one must first test the marketability of the products and / or services being offered to help establish the viability of the business.
4. Not taking into account your strengths and weaknesses: A business model which does not take into cognizance the promoter’s strengths and weakness is likely to have disastrous results. For a not so gregarious person, a business which requires direct contact with the customer may not be a very good option.
5. Not investing in marketing: Most small businesses are often not keen on allocating resources financial and human for marketing and this in the long term can be detrimental for their survival and growth.