Last Updated: October 10, 2022
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Running a business is no easy task. There are many things to remember each day, many moving parts, and plenty of opportunities to make mistakes that might slow you down or even derail your entrepreneurial endeavors altogether. Today we’re discussing the top four mistakes that might put your money in harm’s way. This list is by no means a complete collection of all the missteps one can make in the world of running a business! You can find more tips for success concerning running a business and getting the most out of life from educator and success coach Andreas Philip Gross here.
Mistake #1) Not understanding business taxes and finances
You might be an expert at what you do, but are you an expert when it comes to the financial and taxation side of your business? Maybe you are, but that isn’t the case with everyone. If you don’t fully understand how business taxes work, you find yourself struggling with the financial side of marketing, or you simply need to sharpen your finance skills and business acumen, you can earn an accounting degree online to help you better master these areas. Going to school online means you don’t necessarily have to shut your business down and stop working to pound out that credential!
Mistake #2) Having ideas without setting goals
Do you know the difference between a dream and a goal? If not, the Developing Good Habits blog does a great job of explaining this. Essentially, a dream is something you want, while a goal is something you actively work toward. Hiring a success coach like Andreas Philip Gross is a great first step along the path of turning your dreams into goals! Then, you can make an actionable plan to get your business where you want your business to be.
Mistake #3) Taking on too much too soon
All of us dream of growing our businesses into successful enterprises that allow us to retire and enjoy life on our own terms, but too much growth too soon can actually hinder our endeavors. Startup Nation suggests that moving too quickly can actually mask serious problems if you’re not careful! Instead of aiming to become the next big giant on the block overnight, take the time to grow each aspect of your business slowly and sustainably so that you can create processes that allow for sustainable growth at each step.
Mistake #4) Not reevaluating prices with vendors
As you grow, you will likely order more and more raw materials and products. If you are still paying your initial agreed-upon prices for these, then it’s time to reevaluate. There are plenty of online templates available that can help you check to see if you’re getting the best price on the things you order. While customer service and vendor reliability are definitely very real factors to consider from those you buy from, also remember that the prices you pay directly affect your profit margin in the end. You might think about asking your current vendors to reevaluate the pricing structure they are offering you right now if you’re consistently ordering more than 25% more from them than you were when you first started using them.
You never know where the “bad apples” may be lurking! If your business has employees, background check them before hiring to ensure that you’re not bringing someone on the payroll who’s been convicted of embezzlement, fraud, or another serious crime that might put your business at risk.
While this is not a full list of all the mistakes to watch out for as a business owner, these are a few that can quickly take a toll on your bottom line if you’re not careful. From going back to school so that you can better understand accounting practices, to taking it slowly and really spending the time to build a solid foundation, the above tips are a great way to keep yourself in check as you nurture your business and allow it to grow and spread its wings.
Guest Post by Dean Burgess of excitepreneur.net
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