Small business: 7 mistakes that make you lose money

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Tazma
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Joined: Wed Feb 08, 2023 4:39 am

Small business: 7 mistakes that make you lose money

Post by Tazma »

Have you noticed that some specific mistakes hinder the development of your company and cause you to lose money? To avoid them, you need to inform yourself and understand why some attitudes have such negative results. Therefore, in this article we show some mistakes that delay the growth of your business. Let's see what are they? 1. Mix personal and business expenses The individual's accounts should never be mixed with the expenses of the legal entity, as this creates confusion and impairs the control of finances. Regardless of whether you have partners or not, it is necessary to stipulate a reasonable and fair value for pro-labore, so that it is possible to satisfy the main personal needs without jeopardizing the development of.

The company. 2. Not tracking Cash Flow Cash Flow boils down to the financial movements related to the inflow and outflow of cash. Follow-up is important because it clarifies many financial issues, such as where the money is coming from and how it is being spent or invested, and gives entrepreneurs Country Email List back financial control. And there's more: by analyzing the Cash Flow, it is possible to make financial projections, that is, to understand which payments and receipts are recurring and what to expect from the financial situation in the following months. 3. Not investing in employees Training and qualifications are precisely aimed at preparing employees to face day-to-day adversities and generate better results for the business. Leaving this issue aside not only impoverishes employees over time, but also causes the company to lose money due to.

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Administrative errors, operational failures and other problems caused by dissatisfaction, demotivation or lack of knowledge of functions. 4. Borrowing without knowing what you are doing We know that, sometimes, the financial situation is tight to the point where there is no other option but to borrow. But you need to assess the situation calmly, or the situation could get even worse over time and jeopardize your business. So, before applying for any loan, define what will be done with the money and, under no circumstances, use it for any other purpose. Also set realistic deadlines to pay off the debt and make it a monthly commitment that cannot be postponed.
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