6 Common Mistakes New Business Owners Make

Whilst mistakes are understandable when starting a new business, some can be fatal to your new venture. We list 6 of the worst banana skins, in order to steer you away from danger and towards commercial success. 

Buying a van that is too big 

A common mistake is that potential van owners over-estimate the size of van required by their business. Empty space onboard = lost profit, through excess fuel consumption, along with unnecessarily high insurance costs. Your van size should accommodate 95% of your business needs.  Find a van leasing company that will listen to your exact needs and requirements. 

Thinking that cash purchases are still the best/only way of buying a van 

Times have indeed been a’changing in the world of van leasing, with numerous finance leasing packages now available to suit all business sizes. Cash is no longer king, as why purchase upfront and take on the worry and risk of unplanned maintenance and the cost of servicing your workhorse, when your van leasing broker can do it all for you?

Not shopping around 

When you are clear on the size of van you require, how you plan to finance the purchase, then shop around. There are deals to be had but they don’t come to you! Do not walk into the showroom of the first van leasing broker you come across and be taken in by sales patter, or contemplate purchasing anything, if you are even 1% undecided. Keep in mind that whilst looking similar, some vans will give better value in part-exchange than others, when you come to sell it on, (if you choose not to upgrade). 

Failing to accurately calculate annual mileage 

Whilst leasing is a van-tastic option for many businesses, it relies upon you, as business owner, to be able to work out your projected mileage. If you exceed the agreed mileage agreed at the time of purchase, you will be liable for a penalty from the leasing broker, at the end of the lease agreement.

Not reading the small print 

The oldest mistake in the book; yet, it still catches potential buyers out. It is your responsibility as a new business owner, to go through every detail that might cost you money, with a fine toothcomb. It may cost you a lot more if you choose to ignore ‘the boring bit’ at the bottom of the page.

Using and abusing your vehicle 

When you return your van at the end of the lease agreement, it will be checked over by the leasing broker for examples of cosmetic and mechanical damage, under its Fair Wear and Tear policy. How you have looked after your van will now be examined. You will be liable to penalty charges, if the vehicle is not in good working order, i.e. no scratches or dents, correctly inflated tyres with adequate tread and has a valeted interior. You should present your van in the condition that you would want to receive it!