How good of a job have you done with money when it comes to running your business?
If the answer is not all that well, when do you plan on trying something different?
Given the importance of finances to running a business, you can’t afford to be bad with money.
So, are you making too many financial mistakes as you run your business?
Is Debt Bringing You Down?
In looking at money mistakes and how they can harm you, remember to avoid the following as much as possible:
- Credit card debt – One of the worst things you can do is run up a significant amount of credit card debt. That said there is no reason to have that kind of debt in the first place. Sure, you are going to need a credit card to buy certain items for your business needs. Things that come to mind include any big-ticket items, travel to trade shows and more. Even with such expenditures using plastic, do not accrue a huge tab over time. All this does is put you behind the eight ball. Remember, those interest fees alone can take you years to recover from. Try and use cash whenever possible and be sure to track your expenses on a regular basis.
- Not seeking financial help – Another gaffe some business owners will make is not to know when to seek help. For example, if you are behind when it comes to money, will you seek a business line of credit? With the proper line of credit, your business can buy any number of needed items and more for your company. In finding the right line of credit provider, do your research. Check to see how long each company has been in business. You also want to know what kind of track record they have helping companies such as yours. Last, a stellar customer service record is key too. It is fine to ask for financial help. In fact, it would be much worse if you sat idly by and did not seek help when your business was in need.
- Wasting money – Last, are you a business owner with a tendency to waste money? If so, this is one of the worst things you can be doing over time. An example here would be spending too much on rent for the office space you are renting from someone. Look around to see if you can get a much better deal and save some money. Another example is when you spend too much money on supplies. Yes, you may have one or more favorite vendors you like working with. That said are they giving you the best deals possible? If the answer is no search for ones who will give you better prices. Finally, look at other areas of waste. These can be too much for office utilities, not getting your money’s worth for advertising and more. When you sit down and look at your yearly company finances, chances are you can find ways to save.
In improving your company’s outlook, do all you can to avoid financial miscues that can come back to haunt you.