5 Financial Don’ts for Small Businesses
Whether you’re opening a brand new business from scratch or re-opening after a temporary closure, there are some financial “don’ts” for getting your business up and running. It can be easy to become overwhelmed, get lost in poor habits, or take on too much when you’re so focused on becoming successful and profitable as soon as you can.
1. Don’t work 80+ hours a week.
If you are overworking yourself every single week, your business simply isn’t profitable. Working that many hours a week is not sustainable, and changes need to be made. While it may be necessary to bust your back when you first open or re-open your business, this should not be a common recurrence. Watch how many hours you put into your business, and make sure to allow time for a personal life and relationships.
2. Don’t try to do it all.
Find what your company is good at and own it! You don’t need to offer everyone everything - but if you can offer a few really exceptional services that help people, you’re on track. Become so good you’re considered an expert.
3. Don’t overestimate your future sales.
Please keep specific records so you can estimate your future sales in an accurate manner! The goal is to maintain a steady cash flow, but we can’t always get what we want! Pay attention to when you see a spike in sales versus a drop, and if you notice it’s a seasonal change, prepare ahead of time by saving to add a little extra financial cushion. But, never overestimate!
4. Don’t wait to act on your bookkeeping.
No good will ever come from neglecting your books. Don’t do it! Keep them updated and accurate, run reports, and use them as guidance on making current and future financial decisions or just to know where your business currently stands and compare it to past data in your books.
5. Don’t lose sight of why you’re doing this.
Why did you start your business in the first place? Don’t forget to reflect on your journey, from where you’ve been to where you’d like to go. It’s easy to get swept up in the day to day chaos of owning and running a business, but don’t forget why you’re here!