Financial Mistakes New Business Owners Make & How to Avoid Them

1. Not saving for taxes

Over the course of your first year in business there will be many things that you

are learning. It is important to not let your taxes be one of those things that sneak

up on you.

Start a separate account for tax savings. Save 25% of your profits to prepare for

what you may owe at the end of the year. If you do not have assistance with

quarterly tax payments, find someone who can help you!

2. Mixing funds

Open a business checking account and business dedicated credit card.

3. Undervaluing your time or services

Starting a business is such a bold, overwhelming choice, but being in business

for yourself is so rewarding. In the beginning it can feel like the right thing to do to

undervalue your services as you are gaining more experience and clients.

However, it is important to put the right price tag on your service or product from

the beginning. Your business will be ever changing, from your model, your

strategy, your product and your overhead. With that in mind, take time to do

market research on what other similar businesses may charge for their service.

Spend time perfecting your value proposition. By doing this you can ensure that

you know what your service and time are worth, and you are able to convey that

to your potential clients.

4. Delegating & Systems

As a new business owner it is easy to get your funds tied up in unnecessary and

costly systems that promise to bring you more business. Pay attention to potential

ROI for these things, evaluate if it is really necessary to grow your business

at this time.

On the other hand, it is important to allocate funds to hire those that can help

streamline your business and ultimately save you money. Seek out professionals

such as a bookkeeper, accountant, financial advisor. These experienced

individuals can help save you money, as well as time, that you can use to grow

your business,