You may have the best product, the best workforce, the best idea, and the best of everything you want but for this purpose, you should have the best money management strategy.
The ability to control and master money is one of the big challenges of any entrepreneur.
Some of the money mistakes made by the entrepreneur should be avoided at all costs.
5 top Money Mistakes You should avoid
1.Not Separating The Business Account From The Personal Account
It is one of the most common mistakes made by entrepreneurs especially the young ones.
You are unable to run the business with the help of a business or personal account combined.
It is an error that will demand money from you later on.
You must get out from your comfort zone and create separate savings accounts for the business.
It should be done before you start collecting the revenue and calculate profit.
Checking of account and credit should create an atmosphere that allows us to see both cash outflow and inflow of the business.
By doing so, you can see a clear picture of the business and earn a lot.
2.Making Expensive And Huge Personal Purchases
When you are choosing to make an expensive personal purchase like Bugatti, buying Lamborghini, or maybe buying one of the expensive houses in the street, you would not have money to take care of unforeseen business expenses.
It is so because you must have diminished extravagant personal savings.
When you are starting a business, certain roadblocks and unforeseen situations lead to expenses and these are huge expenses when you are unlucky.
So, if you want to make expensive personal purchases, then ensure to have some side fund, side savings so that you can manage expenses very smoothly.
3.The incurrence of debts with an expectation of the high future profit.
The good thing about the future is the probability of the happening of good things and the bad thing is happening of bad things probability.
No one can expect what will be a clear picture of the future and this is why it would be dangerous to incur some debts such as credit card debt with huge future revenue hope.
Incurring debts due to expecting more revenue is one of the major mistakes made by most of the entrepreneurs.
4.Not having any side fund
You will not know the importance of any side funds in case of an emergency. Not saving any money for the future offers the worst situations. Lean and emergencies times always come in life, and you need to manage:
How to navigate emergency problems?
How to search and survive in difficult times?
Better problem-solving capacity determines how much power you have to survive in difficult times.
The ability to get success in your life not only depends on the IQ level but also depends on the Adversarial quotient.
AQ measures how much time you can withstand the difficult situation.
5.Fail to plan for the upcoming tax obligations
Taxes can consume a major part of savings when you have no planning and forecasting.
Taxes may vary from one place to another.
Some of the taxes are higher and some are lower.
You should properly estimate the saving percentage consumed by all taxes.
By knowing whole situations, you will have the best picture of where you are and what will be your route.
Losing money is a part of a human’s life but the handling of losing money defines who you are.
The world Billionaires also tell you how they lose money many times and what type of strategies followed by them to become billionaires.
As an entrepreneur, you must ensure to calculate the risks every time.
You may also lose money but you can also minimize it by avoiding the 5 mistakes made by entrepreneurs every time.