Invest heavily in advertising can attract many customers, but it is wrong if you can not turn those notes into loyal customers
Major financial mistakes of the small entrepreneur
When an entrepreneur starts to develop their business idea, it fails on many occasions very common: lack of liquidity for the initial investment or during the first months of business development. The initial enthusiasm for a project does that on many occasions the entrepreneur experience moments of entrepreneurial blindness and to not properly plan cash flow. We must prevent at all costs the tensions of cash that can be lethal for many projects and force to finish our entrepreneurial adventure much sooner than expected.
Here are the main financial errors that, according to many experts, committed entrepreneurs when they put in place a Business: excesses of investment in the business from the professional point of view, young entrepreneurs can spend their savings with too much freedom. Perhaps lease luxury offices or buy high dollar equipment.
Excessive spending on business expenses which are not absolutely necessary quickly can ruin your personal finances, says Alexa von Tobel, founder and CEO of LearnVest.com, a line of finance and personal resources. It can be easy to burn through their savings, even before you have a product or service to sell, says. It was then when young entrepreneurs deepens into the hole personally.
On the other hand, "spend every dollar you have "in the construction of a really good product and put it in front of users", says von Tobel. "If your product is not good, there is no hope to make some progress."
Do not use in advance of income if you have a contract with providers and this stipulates that revenues will come in certain date, you can use them from that day and not before. You commit not to use this money if you do not actually deposited in your checking account.
Mistakes new entrepreneurs
Assume that the money in the box is the money available in the company, thereby would like to say that only operates with money box, taking a very short-term management, thinking that collecting this money week helps me to pay payroll and that collection that follows is for payment to suppliers and that surplus is for Member's personal account.
Does not have what you don't need.
"Most have multiple accounts, that we sometimes don't even look, and a lot of cards, that we really don't need. Even you have credits that could perfectly be avoiding to save that money. These are all expenses, totaling many commissions in a year. And, above all, a lack of control that prevents you from being aware of the charges and keep your accounts up-to-date and well clear.
Not having professional services. The business world should not be confused with friendships. Don't let yourself be advised by the "friend the friend". For topics such as accounting or legal aspects see your questions with experts.
Pay more for customers.
Spend much money on advertising it can attract a lot of customers, but it is a strategy that will lead you to lose money if his company cannot convert those notes into loyal customers. A company or website that spends US$ 500 on advertising to acquire a customer who pays US$ 20 a month and cancel your subscription at the end of the year simply is pulling money. Solution: test, measure, and then try again. Once done enough tests to determine how to make more money selling products and services to your customers what you spend acquiring those customers, launch an advertising campaign.
Too much hurry.
If you do things calmly and do not leave yourself carried away by ads, you will save a lot of money because in your bank you can get the same money at an interest rate of 8%. While rapid credit enterprise will collect a 24%. If not more. Check the counting down. The claim of the companies that are dedicated to the reunification of debts is that you can reduce by half what you pay per month for your credit and loans. That's true only a half, because at the end, you will pay much more because to lengthen the life of your debts interests soar.
Erroneous information not based their decisions on people who may not know the topic in depth. Many hints of "friends" may have dire consequences for your company.
Thinking that a good product always sells only: must implement a good strategy commercial and promotional; the fact that a product is good is not synonymous with high sales. You can have the best product with the best quality and the best price, but it won't you nothing if nobody knows about him.
Not paying taxes on time when you hire an employee you must deduct a percentage to pay Government taxes. So that you don't confuse you and you not involucres in trouble, can carry separate accounts, one for ordinary operating expenses and the other for the payment of taxes.
Not to admit and correct mistakes in time so we enrolled in our genetic code: generally we are very persistent for good and for bad. Many entrepreneurs are obsessed in thinking that all consumers are like him and that they must share their criteria. If that does not lead to an immediate success, they strive to demonstrate to the world that they are wrong. This insistence is a good sign, but must have a limit. Come to him we must evaluate and think, without arrogance, if perhaps we were those who were wrong.Mistakes new entrepreneurs traffic news