The Top 3 Financial Mistakes Small Business Owners and Professionals Make

The Top 3 Financial Mistakes Small Business Owners and Professionals Make

We all make mistakes. Often it’s the best way to learn. The lessons that hit the hardest, stick the longest. Some mistakes we want to avoid when we can. Especially financial mistakes. Here are the top 3 financial mistakes small business owners and professionals make and a quick thought on how to avoid them!

 

6 Methods To Make Sure Your Business Doesn't Fail

Before we discuss our tips, did you know that 70% of businesses will fail? We put together a FREE guide identifying the Top 6 reasons businesses fail and give you actionable steps you can take on every one of these to make sure it’s your competition failing and not you! It’s our free gift to you and you can access it right here.

We were inspired to write about this after our conversation with Tracey Bissett, founder of Bissett Financial Fitness. You can listen in to the replay of our conversation on our podcast here  or you can watch it on our Youtube channel!

Mistake #1: Not holding themselves accountable on their financials 

Ever heard of a camel sticking it’s head in the sand? The saying sums up a behavior that’s all too common for people, we don’t want to know what we don’t want to know. Our financials, especially, are easy to avoid. It’s almost like saying, I can’t be sick if I don’t realize I’m sick…well guess what? You’re still sick! Understanding our financials are an extremely important undertaking. It doesn’t mean you have to do it on your own but you need to understand the accounting and finances behind your business.

Tip #1 – Get a bookkeeper, an accountant or an outsourced CFO to HELP YOU understand your financials and never ever be the camel.

Mistake #2: Not pricing their offers profitably

Ok, 85% of small business owners Tracey has worked with price their services and offerings low. So low in fact that most end up spending more in time and expenses than they actually net. Ouch.

Tip #2 – If you haven’t opened your business yet, get realistic about the time spent, how much you should be paid and the total expenses that go into a sale. That should drive pricing. If you have opened your business and you’re not sure…when 85% are off the mark, chances are you may be too. Find someone like Tracey that can help do a deep dive on pricing!

Mistake #3: Not getting access to credit right away

Credit takes time to build and the earlier you start the easier it will be to get credit.

Tip #3 – You can often personally guarantee a business loan or credit card early on. Remember, banks love to lend money when you don’t need it and are notorious for not being available when you do. Set up credit early to protect against the need for it later!

What other mistakes have you or other business owners you know made?

Did you know! We love answering your questions from the lab. If you’d like to join us and other professionals that are striving to get better every day, you can access the group here!

If you’re working limiting your business mistakes, we can help! Our unique 2 on 1 coaching marries the expertise of a Doctor of Psychology and mindset coach with the business savvy of a former Fortune 50 sales executive. We specialize in helping entrepreneurs and professionals like you master your time, sales, and confidence, to evolve you to your greatest potential. To learn more about our coaching you can contact us here!

Feel like you need coaching but not sure you can afford the investment in yourself? That’s ok! We have a scholarship available to diverse candidates of need. You can apply for our scholarship for our coaching and our courses here.

Not enough time in the day, we get it. Check out our AYOP course, 2x Your Time, right here. We walk through everything from time management and calendar basics to how you can supercharge your days weeks and months through practices and techniques that are grounded in experience and proven by science.

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