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. Udonheardis.com shares 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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