Avoid These 4 Common Small Business Financial Mistakes

I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently?

Regardless of industry and business type, all small business owners go through bumps and bruises financially. There’s a theory out there that failures make the best teachers. That may be true, but learning from the mistakes of others is a great way to get the lesson without the bruises. Here are four common small businesses financial mistakes and how to avoid them.

Thinking Income and Profit are the Same Thing

Many a small business has closed its doors over the space between income and profit. Income is what money comes into the business. Profit is what money it keeps after paying all of its expenses. Sometimes a business can lose money and still continue operating for some time because of the float between income and debt are handled. It doesn’t make it any less of a bad situation. If your business is losing money it’s only a matter of time before you don’t have a business anymore.

Overspending on Tools and Staff

We often talk about how trying to do everything yourself only burns out the small business owner. But the flip side of that is trying to bring in too much help too quickly. When you overspend on equipment, tools, and staff, you put your business in the tough position of having to support those purchases with sales. And if you’re not financially ready to do so, you can put dangerous strain on your business.

I’d be really interested to know your opinion. Check out the full article here and then I’d be happy to discuss with you by phone (0467) 749 378 or email [email protected].

Thanks,

Robert