Owning your own business is part of the American dream. But many small businesses fail, largely due to money mistakes made by their owners.
Don’t make these money mistakes.
Not having a business plan.
You may think that you don’t need a business plan because you’re not seeking financing. Your business plan isn’t just for funding opportunities. It’s a roadmap that helps you stay on track while you’re building your organization.
Not separating your finances.
You need to keep your personal and business finances separate for tax purposes and for your own sanity. By tracking business expenses separately, you’ll be able to track your profitability. When you are ready to incorporate, it will be much easier because you’ve set yourself up for success.
Ignoring your tax liability.
As a business owner, you’ll need to keep up with your taxes throughout the year. Don’t miss deadlines because the IRS will hit you hard with fines and fees. You’ve got to think about payroll taxes, sales tax and property taxes. Make sure you’re paying taxes to all the entities you should.
Not saving for a rainy day.
When you’re making money, it’s easy to want to put it all back into your business. You should start a savings account to have money when the cash flow isn’t quite as good as you expect.
Not using financing options for growth.
Taking on too much debt is one mistake but forgetting to take advantage of financing is another. There might be times when it makes sense to get a loan to pay for real estate or help you when you’re in a cash flow situation. Don’t make the mistake of relying only on yourself. Use resources available to you to keep your business going.
Steadfast Funding Partners has financing options for your business. Contact us today for more information.