Small businesses play a vital role in the economy and are one of the most valuable business sectors in almost every industry. They are also one of the more susceptible to making mistakes, particularly in those very early stages.

Though all businesses make a mistake and indeed learn and grow from them, with a smaller company there’s not much room for maneuverer, and some mistakes can, therefore, end up being very costly indeed.

Here are a few quick tips if you’re just starting out with your small business venture:

Pay Attention to Hiring the Right Employees

Many smaller businesses slack off a little when it comes to hiring employees, therefore resorting to more informal interviewing techniques. This can lead to accepting a person based on just liking a couple of their apparent traits. However, long-term this certainly does not equal the best candidate for the job.

Hire people who have the skills that you lack; after all, if you need help in a smaller company, it’s more than likely in an area that you don’t necessarily have the relevant skill set for.

Be mindful of the job description you put out there and make sure it’s relevant to your company needs, not copied from other advertisements. Then, once you’ve selected that candidate, do a thorough background search and don’t skimp on chasing up their references before they start.

Learn Who Your Best Customers Are

Though you may initially feel that any customer equals a good customer, as you begin to grow you will not be able to rely on this method of thinking.

Invest the time and resources into finding out who your most profitable customers are beforehand and make it your goal to keep a list of them, continually revisiting this list and updating your information as you go.

By taking the time to get to know your predominant customer base at the very beginning of your journey, you start off building the best foundations for future sales.