Here are seven costly yet all too common business mistakes which can impede your success
When running a business, its easy to get caught up in day-to-day concerns and lose sight of the big picture. Here are some costly yet all too common mistakes to avoid:
1. No plan
A formal business plan is not necessary, but there must be a sense of direction and purpose to guide the company and the people who run it. This doesnt mean mapping out every step and detail in advance. It does mean having a goal to work towards. You should have a plan.
2. Wrong business partner
Choose your partner based on the qualities he or she brings to the business, but do not neglect the persons character. If you and your partner have trust and mutual respect, you have a foundation to build on. Choose your partner as if you were choosing a spouse.
3. Not enough money
Many businesses run out of money before the operation really has a chance to get off the ground. It costs money to start, operate, and grow a business. Keep costs low. Dont buy gadgets you dont need. Establish a line of credit with a bank before you need it. Have enough cash available to get you through the lean times. Stretch those dollars.
4. Trying to do it all yourself
Do what youre good at and delegate everything else. When deciding what to delegate, ask yourself, Is this the best use of my time? Your company will not grow if you attempt to do it all yourself. Hire responsible people and delegate to them.
5. Not seeking professional expertise
To save money, small business owners often avoid seeking professional advice. I was recently approached by a new client who wanted to sell a retail building to another business entity he owned. He didnt realize that he would have to pay taxes on the sale. By spending $100 consulting with me, he avoided paying $92,000 in taxes. CPAs, attorneys and other professionals can be pricey, but not getting their advice can be much more expensive.
About the author
Armando G. Roman CPA/PFS MBA has more than 25 years of experience providing clients with advice and counsel regarding financial matters and their monies. Mr. Roman speaks fluent Spanish and is a former columnist for La Opinion, the nations largest Spanish-language daily newspaper. He is the incoming chairman of the board of directors of the Arizona Society of Certified Public Accountants, chairman of the Audit Committee of Maricopa Integrated Health Systems, and a board director of the Arizona Hispanic Chamber of Commerce. He lives in Paradise Valley, Arizona, with his wife and three children. He can be reached at firstname.lastname@example.org