It is pretty surprising how many people make the same mistakes over and over again in some business endeavors. Moreover, despite the fact that these mistakes have happened in the past to many other persons, some business neophytes still commit the same mistakes. It is therefore very important to know the most common mistakes that most businessmen commit and how to avoid them. In other words, if there are things that you should know and do in starting up a business, there are also some things that you should avoid.
Avoid unknown companies:
You may be offered very enticing offers by some companies from time to time. Business owners should have some level of caution when they do business with companies they know very little about. Some fraudulent companies will provide you with contact information but often this will be false.
You should visit business premises of the company that you are doing business with. Check that the company gives you not only a mobile number but a landline one too. Fraudulent companies may only provide a mobile number so it’s important for you to have relevant contact information.
Avoid unlicensed companies:
Whether you do business nationally or internationally, you need to ensure that the business that you are working with has a license. In most countries a business will need to have a license and will have a registration number. If the company you want to work with does not provide a registration number you should opt to not working with them.
Avoid low prices:
While it’s nice to get good deals you should be cautious if you receive ridiculously low prices. Most legitimate businesses will try and give a reasonable price fraudulent companies will try and entice with incredibly low prices. When prices are too low you should do some investigation as to why they are so low.
Businesses may find that some fraudulent companies are selling so cheaply because they have fake branded goods. If you do buy you could face legal action in many countries and be prosecuted.
Avoid advance payments:
Businesses are often keen to do quick business and so to move things forward they pay in advance. Often they will find that the goods they ordered are never delivered or receive goods that are different to the order they placed. Even if you have previously dealt with the company before you should avoid advance payments.
Check that the goods you have received are exactly what you have ordered. This way you have a little more security. Another factor you should take into account is payment options. Use a safe and secure payment method rather than money transfer agencies that you have never heard of.
Avoid agents or third part vendors:
Third party vendors or agents will often charge you fees so it’s best to avoid them. You may even find that some of them also have hidden fees that can make your products more expensive to purchase. Sometimes you can’t avoid working with third party vendors or agents and if you must then be sure to do checks.