Money is always a big challenge for any entrepreneur who is just starting up. As a new start-up, there are some mistakes you should avoid. The following will prevent you from unnecessary waste of business fund. These are some of the things you must take into consideration;
Having a combined personal account and business account
Either 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 are self-funding, remember to refund back.
Lack of Budget
For any serious new business with long term goals, it must have a pragmatic and realistic budget, a budget in line with the available budget.
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 early 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 not necessary for any new businesses. It is advisable to be strategic in spending and leave the big purchases for later.
Lack of savings
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.
Non-payment of taxes and utility bills
As a new business owner, you will be tempted to avoid payment of taxes and utility bills. But know that you may escape it for now, but you will unarguably pay for it later. Pay your taxes and utility bills as at when due to prevent it from piling up. Avoid the payment of unnecessary fines that come with late payment.
Follow this steps above and move to greater heights with your business