I’m quite sure that I can come up with more than four money mistakes entrepreneurs make in their businesses! What percentage of small business fail? 50% of small businesses will not survive 5 years and 70% will not make it to their tenth year in business. How can you beat the odds and ensure that you business not only survives, but thrives? Avoid the 4 biggest money mistakes that entrepreneurs make below.
4 Money Mistakes Entrepreneurs Make
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, 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. Hire a CPA or bookkeeper if necessary, and review the numbers regularly.
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 short-term cash flow, but could be your undoing in the long run.
3.) Not Valuing Your Time.
Figure out what you do best and delegate the rest. I recently heard a business guru say, “If you want to be a millionaire, stop cleaning your own toilets and cutting your own grass.” If I can pay someone $25 per hour to clean my house so I can charge $200 per hour for a Financial Coaching session, you better believe that’s a smart move.
4.) Thinking You Can Do It All Yourself.
In the day and 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. A good attorney, tax accountant, and business coach will pay for themselves many times over. Ask other business owners for a trusted referral.
I hope this helps you avoid the 4 money mistakes that entrepreneurs make both now and in the future!
Need help managing your money in your business? Financial coaching is an excellent investment that will teach you how to manage your money like a boss!