In one of my other posts I mention that the four-letter word you want to avoid is debt. This doesn’t happen by chance.
Keeping out of debt means you need an affective budget to keep you on track if you want your business to not only survive but also thrive.
Knowing that and implementing the proper strategies aren’t always easy.
Here are the five mistakes you need to avoid.
1) Failing to have a budget. People can tend to get carried away when they start their business thinking that they need a lot of “shiny” objects that will make them more successful. Limit yourself to these things. If you want to purchase items carefully figure in whether that fits within your means or not.
2) Saving For A Rainy Day. You need to have backup funds in case of an emergency. Your computer may stop working and now you have that added expense. There may be a piece of software that you need to purchase or update in order to be more effective. Planning for these unexpected expenses will put you in a much better position to keep within your budget.
3) Managing Your Cash Flow. You will need to know how much money is coming in and when. There’s no doubt you have financial obligations that need to be met and you don’t want to be “late” with any of these.
4) Not Planning For Your Taxes. It can be very easy to see the money coming in and forget to put away a specified amount for taxes. That money needs to be saved for what is intended, taxes! Trust me you do not want to make this mistake. It will cause you undue stress at tax time. Remember that tax money isn’t yours to spend. Pay your quarterly taxes. One way to plan for your taxes is to set this money aside as it comes in.
5) Creating a budget but ignoring it. This spells disaster. Your budget can be tweaked on a monthly basis if necessary. You don’t want to create a vicious cycle of boring money.
By avoiding these 5 mistakes you will be in a much better position to operate your business more successfully.
What other mistakes do you think other businesses should avoid?
Leave your comment below.
Be Savvy & Successful!
Toni Nelson – Author, Online Visibility Strategist, Award winning Videographer & Photographer.