Business Startup Advice: 4 Tips to Avoid Common Financial Mistakes

4 common financial mistakes business owners make

If you are a new entrepreneur, just starting your new venture, listen up. According to the Small Business Administration, about two-thirds of businesses with employees survive at least 2 years and about half survive at least 5 years. As one would expect, after the first few relatively volatile years, survival rates flatten out. A high percentage of entrepreneurs will experience failure within the first year of their business because they do not have enough cash.  (Source: Bureau of Labor Statistics, Business
Employment Dynamics.)

So what do you need to know to survive?

For starters it’s imperative that you grab a strong hold on your financial situation. When you have a tight grip on your finances, you will be able to avoid some of the most common financial mistakes that many entrepreneurs make. When you have proper knowledge of your finances, you will have an easier time getting your startup off the ground.

1.  Plan Ahead!

You want to make sure that you are able to plan ahead for any unforeseen disasters. We know that you cannot see into the future, but when you plan ahead, you will be prepared for anything. When you are prepared for emergencies, you will save yourself from frustrations and headaches in the future.

2.  Budget, Budget, Budget!

Aside from making plans, you need to make sure your budget is part of your financial plan’s foundation. Your budget will give you the ability to keep track of the amount of cash you have, your current expenses, and the revenue that you need to grow your company. Your budget will also give you the opportunity to meet all of your business goals. We encourage you to make updates to your budget on a regular basis.

3.  Finance 101: Brush Up On Your Skills

One of the skills you should have as an entrepreneur is financial literacy. You have to know your financial position in order to make the right decisions. Gain an understanding of your finances and find a way to organize your finances and your documents. Are you ready to make smart decisions so you can make waves in your industry?

4.  Choose a Trusted Financial Advisor

When you are the one running a startup, you will experience a variety of advantages and disadvantages. If you want to reduce your chances of financial hardships, we encourage you to reach out to a financial professional who can help you grow your business by offering relevant advice. The right financial advisor will even provide you with advice and information on business investments.

Contact us today for a free consultation on how to make sure you’re making the right decisions for your startup.

Get Cost Savings on Cell Phone Bills

You rely on your smartphone to keep in touch with your office when you go out on calls to customers. But your cellular service is easily costing you $110 or more per month. In addition, you’re paying for the phones for each member of your sales team. So the fee is proving a major drain on your limited budget.

Read moreGet Cost Savings on Cell Phone Bills

Grow Your Business: Stop Spending On What You Don’t Need!

There is little more disappointing than seeing a great business idea in the hands of an enthusiastic entrepreneur tank because of overspending. There are many things that would be great for your business if they were free, but spending money that does not translate into revenue can hurt your chances of success and instead drain your precious resources. Here are a few things that most small businesses that are gaining traction really don’t need and too many have:

Read moreGrow Your Business: Stop Spending On What You Don’t Need!

Internet Sales Tax Bad News for Small Business Taxes

If you’ve got a small business that sells products online nationwide, despite being physically located in one state, there’s a bill heading for Congress that could cripple your growth opportunities. The worst part is that it’s being touted as a law that could help the brick and mortar side of your business to compete with online businesses, which may mislead some small business owners into supporting it.

Read moreInternet Sales Tax Bad News for Small Business Taxes

How much office rent should I pay?

How much office rent should I pay?  This question has been asked a lot lately because our local business incubator is moving to another location.  Therefore, many companies now face the choice of taking space in the incubator’s new location or striking out on their own into the local market.  These choices have necessitated the use of local commercial real estate brokers who have provided an interesting wealth of information regarding the local office real estate market.  Keep reading as I will share with you the lessons that were taught to me over the past thirty years by some of the most successful operators in business.

Read moreHow much office rent should I pay?

Avoid financial problems by using smart budgeting

As an entrepreneur, it’s important for you to come up with the right small business budgeting strategies that will make sure your company stays on point and profitable.

With all the time, effort, and capital that you pour into your business, the last thing you want to see happen is for it to face some kind of trouble;  or even worse, failure due to financial mismanagement.   The right budget and careful financial oversight applied to your business practices will enable you to paint a clear road map for where you want to be and how you’ll eventually get there.

Let’s take a look at some of the things you can do to plan your business budget and you’ll see how crucial a component it is to your company’s overall success.

Read moreAvoid financial problems by using smart budgeting

Strategies to Reduce your Business Debt

In many cases, business debt is inevitable, especially during the earliest phases in a company’s development.  Depending on the kind of debt that it is, it could be eating into your profits and cash flow and keeping you from expanding your business the way that you want to.  It makes perfect sense that you want to get rid of any business debt you accumulate as quickly as possible.

Read moreStrategies to Reduce your Business Debt

Save Time: Budgeting Tips for Small Business Owners

As a business owner who wears many hats, you are faced with the difficult task of how to best allocate your time.

There are a few budgeting tips for businesses that could help save your most valuable asset – your time. The last thing you need is to spend hours and hours in boring financial budgeting meetings.  Instead, you should be spending your time growing your Company’s sales.

Read moreSave Time: Budgeting Tips for Small Business Owners

How to Cut Costs at the Bank

Today’s guest blog post is from John Gower from NerdWallet  www.nerdwallet.com

Cut Costs at the Bank

There are a multitude of areas in which a business owner might choose to trim expenses, but one that is often overlooked is the cost of day-to-day banking transactions. You may have had the unlucky experience of incurring bank fees in your personal finances, and the same concern applies to businesses. That’s why shopping around is critical to finding the best bank account for your small business needs.

Maybe your new business needs a financial institution to meet its banking needs. Or perhaps your established business is coughing up large sums in bank fees and service charges with regularity. In either case, it may be time to look for a new business checking account.

Read moreHow to Cut Costs at the Bank

4 Easy Ways to Cut Business Costs

As a business owner, you’re probably wondering about ways to save your small business money. It takes time to build profitable revenue streams and carve your niche in your industry. Therefore, you’ll need to be as profitable as possible in order to help your business grow.

Let’s take a look at four easy ways to save your small business money. These methods will give you some ideas on how you can help your business move forward through smart financial planning.

Read more4 Easy Ways to Cut Business Costs