7 Critical Business Financing Mistakes
Summary:
Business
financing mistakes can be hazardous to not only your business growth but your
very business survival. Learn all about
the 7 critical business financing mistakes you should avoid if you're serious
about growing a profitable business.
Keywords:
business
financing mistakes
Article Body:
Avoiding the top
7 business financing mistakes is a key component in business survival.
If you start committing these business financing mistakes too often, you will
greatly reduce any chance you have for longer-term business success.
The key is to understand the causes and significance of each so that you're in
a position to make better decisions.
>>> Business Financing Mistakes (1) - No Monthly Bookkeeping.
Regardless of the size of your business, inaccurate record-keeping creates all
sorts of issues relating to cash flow, planning, and business decision-making.
While everything has a cost, bookkeeping services are dirt cheap compared to
most other costs a business will incur.
And once a bookkeeping process gets established, the cost usually goes down or
becomes more cost-effective as there is no wasted effort in recording all the
business activity.
By itself, this one mistake tends to lead to all the others in one way or
another and should be avoided at all costs.
>>> Business Financing Mistakes (2) - No Projected Cash Flow.
No meaningful bookkeeping creates a lack of knowing where you've been. No
projected cash flow creates a lack of knowing where you're going.
Without keeping score, businesses tend to stray further and further away from
their targets and wait for a crisis that forces a change in monthly spending
habits.
Even if you have a projected cash flow, it needs to be realistic.
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