subject: Business Mistakes – Learn From Them [print this page] Anyone who has run a business will tell you that the best thing about running a commercial operation is that you quickly learn by your mistakes. And that's why you always need good business insurance, for those times when the lesson can be costly.
Business insurance is there to soften the blow for many of the mistakes and awkward scenarios you'll come across as a business owner.
So let's have a look at some of the most common mistakes and ones that only a sound small business insurance policy can help if the worse happens.
First things first. Don't spend it all at once. Many companies start with a few bob in their pocket; either which the owner has saved, or external investors have contributed. The big mistake many make is to spend it quickly, to see it as money that can be used to start a business properly. Symptoms of this can be a good office address. Or, smart brand new desks and top of the range computer equipment for the employees. A large, well funded petty cash tin for stationery is another downer. Okay, easy enough to fall into that trap, but money that should be directed towards items such as sme insurance, often is not seen as so important.
Potted plants, posh television in the reception area, rare coffee from the Brazilian foothills for the boys in the warehouse are other symptoms. It's amazing that with these type of companies, how often they overlook such matters as sme insurance.
Indeed, there's a rule with many company investors, that there are a number of no-no's when it comes to investing their money into situations. One of the biggest turn-offs is ironically the water feature outside the office. This has been cemented in venture capital folklore, with any company with a fountain outside the office being marked down as immediately questionable.
People might wonder why there exists such prejudices about water features, but that misses the point. It's not really against the water feature itself, but against what it represents. It's seen as frivolous, a waste of money and something which requires regular attention in other words, a complete waste of money and why would an investor want to sink his, or her money into such a company?
And money that is being spent maintaining the water feature should be directed elsewhere. Improving the business insurance perhaps, employing a news salesman, or funding more sales trips; all these are worthy of more merit than a water fountain. Next time you visit a company, just play a game with yourself. Have a quick look around to see where the company is actually spending its money. You can learn a lot from such games!
