Are You Avoiding These Money Pitfalls?

According to?Bloomberg, 80% of entrepreneurs who start businesses fail within the first 18 months. How can you ensure that you’re not part of that statistic? Here are four money pitfalls you to be aware of so you can steer clear of them.

1.????Failing to Pay Attention to the Numbers.?

Most business owners are busy doing what they do best: building a custom deck, crafting?an awesome microbrew, and writing killer website copy.?However, if you don’t stop long enough to evaluate your business finances, you may find that funds have dried up and it’s too late to do anything about it. Review the key numbers weekly or at least monthly.?Not a numbers person? Hire a CPA or bookkeeper?to keep you on track.

2.????Excessive Personal Debt.??

Being on shaky ground with your personal finances as a small business owner is a recipe for disaster.?Excessive personal debt will cause you to make decisions that provide you with short-term cash flow but could be your undoing?in the long run.?You might be tempted to take on a client or partner who really isn't a fit if you're desperate for cash flow. Plus, your personal money habits tend to show up in your business. If you pay bills late, are disorganized, and don't spend time managing your personal finances, your biz finances will probably look very similar. Are you thinking about starting (or growing) your business? I advise you to get your personal financial house in order first!

3.????Not Valuing Your Time.?

Figure out what you do best and delegate the rest.?I once heard a business guru say, “If you want to be a millionaire, stop cleaning your own toilets and cutting your own grass.”?It's not that you're too good to do those things! It's just that your time is better spent elsewhere.

If I can pay someone $35 per hour to clean my house so I can charge over $500 per hour for my Financial Dignity??Coaching , you better believe that’s a smart move.?What are your “time vampires” – those tasks that suck away at your time but aren’t giving you tangible business results??It’s time to offload them onto someone else.

4.????Thinking You Can Do It All Yourself.?

In?the?age of TurboTax and LegalZoom, business owners can fall into the trap of thinking “do-it-yourself” to save money is the way to go.?However, in important matters involving your business, these shortcuts may end up costing you both time and money. I've seen people make money mistakes in the thousands because they were too cheap to pay a few hundred dollars for expert advice. A good attorney, tax accountant, and business coach will pay for themselves many times over.?Ask other business owners (or me!) for a trusted referral.

?Is there anything else you'd add to the list?