Some Common Mistakes Business Owners Make

Some Common Mistakes Business Owners Make:

Emmanuel Akpe

Starting or owning a business is by far one of the easiest things anyone can do compared to properly managing the business.

A major mismanagement area in business is Money and I will be mentioning some common mistakes that business owners make.

1. Treating the Income from the business as their personal money:

While you are a business owner, the business money is not your personal money. Do not think you are rich just because business is running smoothly. You are a person and the business is also a person different from you. Take note of that.

2. Not setting a salary for themselves:
As a business owner, you deserve to be paid for the work you do in and for your business.

I mean this is a good way to explain cape the problem in no. 1 above.

3. Not consciously tracking income and expenditure.

Running a business requires that one must be able to track his income and expenses to ascertain serious financial decisions he could take as a result.

The solution to this is to begin a petty cash book registering your income and expenditure. It also helps to measure profits and losses.

4. Not having clear-cut financial goals
Not having precise financial goals means a business person lacks direction.

Clear-cut goals push people to think of ways of achieving these goals as well as serve as a yardstick to determine whether these goals are met or not.

5. Not having a clear-cut financial budget and sticking to it.

Drawing a financial plan would help one to know what he wants to do and how much goes into what.

If not, you could successfully spend all your money carelessly because there is no plan or budget around your spending.

I trust this would help.

You can share it with all business owners you know especially the new ones.

Meanwhile, I am out to expose one of the greatest financial cheats of the time, EARN IN DOLLARS, SPEND IN NAIRA!