Why do nearly 30% of startups run out of funds? When it comes to making financial decisions, there are plenty of opportunities for errors, regardless of how long you have been operating your business. To avoid this demise, business owners must tactfully avoid these five common-but-harmful financial mistakes.
This video elaborate the five biggest mistakes business owners tend to make, and how to navigate and fix them.
1. No planning at all
The first and most common mistake is not planning at all. Financial planning can be draining and daunting. However, it is extremely important because it ensure you know where the business is going and what you need to achieve your goals.
2. Having no budget
The importance of having a good financial plan, including your budget, cannot be overstated. It is one of the first steps toward leading a successful business or personal life.
3. Mixing business and personal banking
It may not seem like a big deal to start-ups, especially as sole proprietorships, but it is essential to separate business and personal bankings.
4. No planning for tax obligations
It is essential to know how much tax we are paying, instead of paying insufficient tax funds.
5. Thinking you can do everything
Building a professional team is equivalent to building a team of employees!