Raising Money

Money Matters: Mistakes Often Committed

Once the money starts coming in, you have to buckle yourself up so that you avoid rookie mistakes and make good use of the money. Even small mistakes can make a large difference when it comes to money. Many rookie entrepreneurs tend to make mistakes when it comes to handling money and end up losing all of it. These mistakes also affect their income and they are literally devastated on the financial level.

To give you a heads up of what you should steer clear off, here are some of the most common mistakes committed by small business entrepreneurs:

Not Understanding your Needs

Remember that your needs will grow with time and you should never underestimate them. You may think that you need approximately X amount of money this year but you might end up requiring double that sum. What will you do then? You won’t be able to do anything.

Thus, you should make sure you always have double the estimated money and time requirements to brace you for any future needs and requirements. The best thing to do would be to check out your business plan numbers and double them. Make sure these numbers are realistic, though.

Not Being Realistic

It is okay to dream big but going too large can pose a problem. Your goals should be in sync with your wallet. Otherwise, you won’t be able to accomplish them. In order to make things easier, clearly distinguish the immediately necessary needs and requirements that can wait a while until you have money.

Once you do, focusing will become easier and you won’t have bitten more than your capacity of chewing.

Hiring too Fast

In the beginning, you don’t even need to hire! Keep hiring full-term for a later stage when you can actually afford it. Otherwise, you will become the lowest paid person. Payrolls will take up a large share of your profits and you will end up with peanuts.

When you start off, until you are clearly established, choose independent contractors. Hire full-time employees only when you have a lot of work to offer and can afford it. By doing so, you will save a lot of time because you won’t have to supervise and train.

Buying New

Buying new stuff can be oddly attractive. You won’t be able to afford it though. In most cases, used is just as good as new and used comes at a far lesser price. Why go for new when you can get the same at a cheaper rate? Logic.

Not Exiting

You need to have a spare lifeboat at all times. Also, you need to know when to jump onto the spare lifeboat and sail away. Otherwise, you will be doomed.

You need an exit plan more than anything else when it comes to business. Keep yours with you in advance and know when to make the exit.
It is better to learn from others’ mistakes than to fall face first on the ground and learn it the extremely hard way.

Entrepreneurial Learning

It is easy to get carried away with money. It is very easy to lose focus and commit mistakes. Learn about the common mistakes so that you don’t commit them because they can hamper your progress in a big way.

Money keeps you going, doesn’t it?

Leave a Comment

Your email address will not be published.

You may also like

Growing a Business

Want Great Guidance ? Find yourself a Super Mentor


They are the gods of small businesses, those inspired individuals who have achieved the highest levels of success. They can be the shining beacons who light up the path of running your business with their vision, wisdom and wealth of resources and contacts. They are The Mentors.

If you are fired with the passion to take your business to great heights, the best thing to do is find yourself a super mentor. Here are some tips to help in your quest

Pinpoint your Need

Sit down and focus your thoughts on your business growth strategy. Which area of the business needs a lift. Is is staffing, is it the finances, is it the production, is it the your lack of customers or is it the business as a whole that needs a makeover. Once you’ve zoomed in on the sore spot, this is where you need…

Read More
Growing a Business

Dreaming Big? You can Move Mountains with these Business Productivty Tips


You may be full of admiration for some people who seem to manage themselves and their work so usefully and efficiently. They seem to fit in so much productive work into the same number of hours which everyone has.. Let’s look what makes them tick and take a few tips.

Learn to identify your most productive hours

Its true, most productive people know which time of the day they can be most creative and efficient. They identify and allot these hours for the best part of their work. This way they are able to give their 100% awareness to the job and business productivity.

Early to rise- A winning habit

Waking up early is a personal habit that has all the plusses on its side. You need not necessarily go to work that early. It’s a habit that gives you more time for personal care, like mediation, exercise, walking,…

Read More
Growing a Business

Leadership Qualities that can make you an Icon


You may have reached the leadership position through sheer dedication to performance and a do or die attitude . Now that you are at the top, your viewpoint needs to change. You have to now be a role model, one whom others will look up to and follow. Here are some tips that can shape your leadership and management skills

Be Competent: Employees will look up to a leader who has good industry knowledge and management skills. If you do not possess these skills you should surround yourself with knowledgeable people who can offer good counsel. Competence is a trait all employees will admire.

Be Trustworthy: No one will look up to a person they cannot trust. Your employees will want to rely on you and count on you. In difficult situations, leaders are expected to apprise their employees of the situations and find solutions on how to address…

Read More
Raising Money

Are You offering Your Services Using the Right Pricing Strategies?


In these times of fierce competition, business people , mostly those that offer services and belong to the service based industry, are finding it a challenge to implement the right pricing strategies. It is virtually a struggle to set the right business price that will retain and attract the customers, and not drive them away. Follow these tips, the crucial dos and don’t s and you may be in a much better position to offer your services at the best price.

Maintain your Business identity and Dignity

If you are offering a unique or special product or service, don’t underrate it just because you want to build a better relationship with the customer. This will just cheapen your offering as another run of the mill. If its something special you are offering the customer, then communicate this fact to the client and get the equation right with the most…

Read More
Raising Money

What is a Fair Wage? How Do you Assess Fair Wage?


How do you figure out a fair wage?

This is a very common question for startups and small businesses. They can’t seem to decide or understand how to set wages and manage reputations at a time. They are determined to pay well but they also have to think about encouraging their employees to stay with them for a long time. This is why there is a need to think strategically.

Listed below are a few expert tips to help you decide:

Don’t Focus Only on Money

Money should never be the main focus for you or for your employees. You should decide on the wages in such a way that your employees are tied to your business. When your business does well they should be able to taste that success and vice versa.

Also, think about additional perks such as exclusive benefits and time off. Many employees value this more than the overall…

Read More
Raising Money

Tips to Winning Hard Negotiations With Ease


While some negotiations are easy, others are quite hard to win. If you stumble you will lose.

Whether it is a potential client or an investor, negotiations can be very tough and frustrating. The problem is that the moment you let your frustration overwhelm you, you will lose the deal and you will give in to whatever is being offered to you. In order to avoid that, here are tips to overcome tough times and to win even the hard negotiations:


Know your opponent as well as possible. This is the rule no matter what you do. You should understand your opponent to the T. Who the person is, what his culture is, what he thinks, what he stands for, how is his network, etc. are the questions you should ask yourself and answer through research before meeting up for the negotiation. Understanding the opponent will give you a great advantage.


Read More