TOP 5 COMMON FINANCIAL MISTAKES IN STARTING A BUSINESS

Entrepreneurs’ growth rate is increasing exponentially and we all must have already a hint why such escalation is occurring. Well, wouldn’t we all give a “thumbs up” as to how running even a small business can help you a lot not only on your daily expenses but as well as in your personal concerns such as your growth as an individual and the control that you have over your own economic life?

Well, to enumerate some of them, besides from the main idea of having a great stream of income to sustain your financial demands in life, with your own business you control your own “destiny”- as a lot may call it. Also, you are more likely to have a work-life balance as well as you can follow what it is that you really want to do without being restrained by anyone. You get to choose your own team and can serve as a great challenge for you that could drive you towards the growth and fulfillment that you’ve been always searching for.

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Yet we all know that the mere act of entering the field of business isn’t automatically an assurance for success. The reason? Well, there are a lot, but basically, it is because that new entrants are not aware of these 5 common mistakes that could have been easily avoided but can indeed be a trap towards instant downfall for any newly built business if haven’t been given the proper action it requires you to, so.

Here goes the list you must take note of:

1. Being Impulsive Instead Of Being A Risk-taker

You should never treat your business as if it is a lottery shot nor perceive it as something which could give you all that you’re in need for overnight. That’s not how it works- building a business isn’t about shortcuts, it’s about practicing and putting into life your creativity aligned with practicality. Thus, before diving in into any specific business, you must be assured that you’re not choosing this business just because everyone else is going for it or because you have heard somewhere else that this is winning card for you.

The point of having a right and strong foundation is where you should start your business venture. Be objective, stay optimistic yet realistic at the same time.  

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2. Hustling Effectively But Not Efficiently

Getting things done and getting things done “properly” are two completely different things. At first, of course, there are some things that you needed to hustle by yourself, but as the process goes further, you should recognize that the best way to finish things is to finish it efficiently and effectively. Which means getting the results that you wanted and at the same time, achieving it with all the resources maximized.

You can’t run a business with just your own efforts, you need to have others that could help and assist you towards the goals that you genuinely aspire for.

3. Choosing The Wrong “Teammates”

It may be financially weighty to hire the people which suit best to the help that you’re in need of. But it would be costlier in the long term if you’ll choose to settle for the people that aren’t really capable of achieving the expectations you and your business designates unto them. Invest in talented people whom could also definitely take you and your business to the next level just as planned.  

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5. Forgetting About the Cash Flow

Poor cash flow management and worse, the lack of proper analysis of the money that comes in and out of your business can lead you towards the downfall you’ve been wishing hard to never face. You see, in order to be assured that your business is giving you more than what it takes away from you (because it wouldn’t be a “business” at all if it goes the other way around), you will never be fully equipped in the things which you should do in order to both sustain and improve the life of your business.

The recommended way to have your cash flow check is dependent on the type of business that you have and the volatility of the financial changes that may possibly occur. Given that, you have the choice to either check it out weekly or monthly. 

6. Not Rewarding Yourself

Sometimes, we all get too focused on something that we tend to forget that we have ourselves to be taken care and given appreciation, too. Your business is a priority, but your business isn’t your everything.

Also, the other reason that you might be choosing to pursue the entrepreneurial field, is because it provides you the management of your time and resources all under control- control it properly, then. You have your life outside the business too and you must pay yourself too.

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Because if not, who else will? And what do you think if you’re not given the things that you’re in need of? What will?

They say that we all had to make mistakes first do before we would be able to recognize, know, and apply what’s right for us and for any undertaking we’re currently in. But for me, what we need instead is be aware of those mistakes, integrate the importance of avoiding it, and of course, be consistent and committed into living up through the guidance of those 5 must-not that are on the list.

References:

Forbes Finance Council (2017, May 30). Fourteen Financial Mistakes All Entrepreneurs Should Avoid.  Retrieved from https://www.forbes.com/sites/forbesfinancecouncil/2017/05/30/fourteen-financial-mistakes-all-entrepreneurs-should-avoid/#57d739d64faf

The Vitesse Network (2017, October 13) Common financial mistakes to avoid when starting a business. Retrieved from http://smallbusiness.co.uk/financial-mistakes-avoid-business-2541090/