Financial mistakes small business owners should avoid
Here are some financial mistakes small business owners should avoid:
1. Not having an emergency fund
You need to make sure that your business has a sufficient emergency fund for when things get tough. Try to protect yourself as well as possible for any unforeseen challenges ahead. Having an emergency fund available will make help to reduce your chances of failure.
2. Receiving late payments
It is likely you may have to deal with late payments, however having to many customers paying late may cause big problems. Keep a keen eye on your cash flow and take the right measures to try and prevent or reduce and future late payments.
3. Spending too much time on things that do not generate cash
Running a business requires you to do many tasks, some of which are things that do not generate any revenue. Make sure that you don't let these non cash generating tasks take up too much of your time. Spending too much time on these task when you should be focusing more on things that generate revenue can also cause financial problems.
4. Mixing your business funds with your personal funds
Make sure you keep your business funds and your personal funds separate.