As a business owner, it’s so important to be careful with your money. You don’t want to spend/waste any unnecessarily, but at the same time you need to make smart investments to ensure you’re making the most of it. That being said, so many business owners make mistakes with their money. Don’t make the same mistakes – read on to learn what they are:
Failing to Invest in Your Staff
Failing to invest in your staff is a huge mistake. If you invest time and money in your staff, they are so much more likely to stay with you. They might not stay with you forever, but at least if they do leave you’ll have brand advocates for life! Not only that, when you train them to the best of their abilities, your business will thrive. Your staff should be your biggest priority, even over customers. When you have happy staff, happy customers are created naturally.
Failing to Keep Good Records
Failing to keep good records can land you in hot water. It can also mean you have to spend a lot of time trying to piece together your incomings/outgoings later on, when you could better spend your time doing something else. Invest in an accountant to sort this out for you if it seems too time consuming.
Buying Things You Can’t Really Afford
It can be tempting when you have money sat in the business that you’re not doing all that much with, but ask yourself if you can really afford things. Do you really need a new monitor/chair/desk? If the answer is no, then keep that money in the business. Even business owners with millions and billions in the bank are sensible. Blowing all of your money on things you don’t need won’t get you very far. The more money you have to fall back on, the better.
Failure to Invest in Other Things
There are things you should invest in that are actually worthwhile when it comes to your business. If something can save you time or money, then it’s probably worth the investment. An office chair will not save you time or money, but a new staff member might. Although a new staff member comes with risks, they could also help you to make more money overall by freeing up your time and allowing you to take on more orders. Marketing is an essential investment. Even investing in a silver bar or something could help your business to accumulate more money. Sometimes you do have to take risks!
Mixing Business and Personal Funds
Mixing business and personal funds is a huge mistake. You’ll get confused, and you won’t be able to tell how much money you actually have coming in and going out of your business. Using a business card or check to pay for something, even something small every now and again can make a difference and mess up your records.
Don’t make these mistakes with money and you’ll be financially sound for the foreseeable future!