Analysis Paralysis – Just Do it Already

One of the biggest mistakes that a new business owner can make is to start analyzing things to death and getting stuck in the planning stage . Of course you want to be sure that you’ve got all your bases covered, but how much is too much?

You can get SO bogged down with details. Believe me, I know. In the early days, it seemed that all I ever did was register one business after the other. For each business, I would set up a bookkeeping system, open a business bank account, and send my order to the printer for my business cards, letterhead, and envelopes.

I spent many hours devising business plans for ideas that I just knew would take off, only to move onto something else a few months later.

Don’t get me wrong; you do need all this stuff, but you also need to start the business and see if it’s right for you. I’m not condoning flying by the seat of your pants, that’s just the way I did it.

I like to consider most of my business ventures trial runs until I know if it’s something I want to do. If it is, then I don’t waste any time in getting all the paperwork together and an accounting system in place.

Here are the steps I follow for a new business:

Register a business name
Keep all my receipts
Keep a log of any accounting items I might need down the road (mileage, receipts, invoices, sales slips). You’ll need this because you must report any income, no matter how long you’ve run the business.
Run the business and decide if it’s profitable

I don’t get caught up in elaborate business plans or any unnecessary paperwork,
I don’t get any stationary printed (except for a few business cards), and I don’t make any unnecessary purchases.

After a good trial run, I’ll invest more time and money, tweak the business model, or learn a lesson and move on.