Christine Syquia's Blog

Learn How to Create Your Own Income

Emerging Business Owners-Avoid These Common Mistakes

Setting up a business and making it profitable is often a difficult task. There are many aspects to consider and deal with before you can actually run your business in an efficient way. Reaching your objectives depends a great deal on the way you devise and implement a series of strategic plans, which can ensure the profitability of your business and increase its performance. However, this is not all it takes for your emerging business to be successful. In order to maximize efficiency, you also need to give a great deal of thought to the execution of such plans. Furthermore, as an emerging business owner, you also need to focus a series of common mistakes that usually prevent businesses from reaching the desired status.

First of all, you should make sure that the company is set up properly. There are a multitude of issues to arrange such as the structure of the business (LLC, S-corp, etc), partnership rules if applicable and in some cases which state the company is established. You have to make a number of small decisions which will not only affect your business in a critical way, but will certainly make a big difference in terms of productivity and efficiency.

Second of all, do everything you can to ensure a correct setup for your financials. When it comes to bookkeeping, you can go wrong in many ways. It is never a good idea to do the bookkeeping by yourself, even if you have the necessary skills and knowledge. You can easily overlook important aspects such the registration for taxable sales, making a backup for your data or updating your books. Each of these can have a negative impact on the growth of your business. You may some doubts towards spending your money on the best bookkeeping software or bartering with an excellent bookkeeper, but this money would be very well spent.

Additionally, speaking of money well spent, you should make sure that all your money is spent wisely, especially if we’re talking about your start-up cash. There are more important things to invest in, i.e. a good marketing campaign, than whims such as a downtown office space or expensive furniture. You should not make unnecessary purchases and expenditures until you have ensured a steady cash flow. You may end up using debt for further financing of your business and a positive cashflow will be all the more difficult to attain.

Furthermore, set a budget and stick to it. The amount of cash required to start a business varies from case to case, but a good budget plan is very important irrespective of the size and scope of your business. Always keep in mind that your business should be generating cash for you, and not the other way around.

There are many things to consider when starting a business. In the beginning, there are many challenges which may affect a small business owner, but the benefits of being your own boss are second to none.  With small businesses being the lifeblood of this country, if you have a good idea and the drive to operate your own business, I urge you to follow your dreams.


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January 1, 2010 - Posted by | Uncategorized

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