Money will always be a huge challenge for any
entrepreneur who owns a new business. It is never enough. So, as a new business
owner, there are some money mistakes you should not commit no matter the kind
of business you are engaged in. If this happens, you will discover that you are
just throwing unavailable resources at your business without having the desired
impact. We share some of the money mistakes you should commit to memory if you own a new start
up.
Having a combined personal account and business account
Whether
you are alone in the business or in a partnership, it is important for you to
separate your personal account or money from the business. This will not only
help you know the viability of your business, you will be aware of how much the
business is making. Even if you collect money from your personal account to
invest in the business, don’t forget to return it.
No budget for your business
For
any serious new business with long term goals, it must have a pragmatic and
realistic budget. A budget that is not above the available capital. The budget
simply tells you how to spend money and the things you need to spend on. Ensure
you strike out the things that you don’t critically need for now.
Making big purchases
You
are in the teething stage of your business, so you don’t need big purchases
even if you have bottomless finances. Buying cars, computers and going big on
advertising is a no
no for any new businesses. It is advisable to be strategic in
spending and leave the big purchases for later.
Not saving for emergencies
You
don’t know when a business emergency will happen. Hence, you always want to be
prepared for it. This means that no matter how much you are making, ensure you
save for unforeseen circumstances. This is important for small businesses if they
want to survive the growing stages of their business.
Not paying taxes and utility bills
As
a new business owner, you are tempted to avoid payment of taxes and utility
bills. But know that you may escape it now but you will unarguably pay for it
later. So, pay your taxes and utility bills as at when due to prevent it from
piling up and avoid paying unnecessary fines that come with late
payment.
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