Costly Mistakes You are Most likely To Make in Business

Have you ever made a mistake as a business owner? 

Who hasn’t? If it’s any consolation, you’re definitely not alone.  

Some business failures and mistakes are minor and can be corrected on the fly. But some, especially those that concern money, can easily burn the house down. It's a big reason why the vast majority of businesses fails during their first few years of operation.  

But..

The key to your success is to quickly identify your mistakes, learn from them, and prevent the same mistakes from happening again.- Mike Michalowicz  

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Here are the most common mistakes. 

 1. No Plan in Place.

There is an old saying, “if you fail to plan, you plan to fail".  Whether your business is a large or small business, every business needs a plan. These means without a business plan to guide your startup and growth, you will struggle to make decisions, get loans, or bring investors on board.  

So, to avoid failures and mistakes it is vital that a businessmen and women ensure that the requirement planning activity is given due importance, so that everything is under complete control. 

 A good plan saves you time and money

Having a good plan in place frees you up to work smarter; to concentrate on the things that really will make a difference; to bring your people together and to achieve better performance and greater efficiency. It gives you much better control of what you are doing. 

 2. Trying to Get Rich Quick

A lot of businessmen and women lately are looking for automated, overnight ways of making money. This is ridiculous.  Truthfully, this our generation is given more and more opportunities to get rich quick and we have become disillusioned by traditional forms of work and earning.  These make us more susceptible to scams and fraudulent offers. 

But if you happen to be a lucky individual and make a quick money, it will actually make you poor. This is because people who gets rich quickly are more likely to make a fatal error that puts the entire gain at risk. Also, they start pursuing a short-term gain that will distract them away from long-term goal and will also make them give up their dreams prematurely. So, Know that success takes time, perseverance, and a little bit of luck. Give your business the time to grow. The recipe for success includes consistent efforts (regardless of how big or small), long term focus and the mindset to keep going . Providing you follow that recipe you can’t fail (seriously – you can’t). 

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3. Not having Separate Business and Personal Accounts.

This is something most businessmen often ignored, thus they tend to co-mingle personal funds with business funds. Even if you are just starting out, it's essential to split up these two parts of your money life. Treat your business, big or small, like a viable entity. 

One of the most obvious benefits of having a separate business account is the advantage of knowing precisely where your money is going and its easier to get a clear snapshot of your finances.   

4. Not Diversifying Your Revenue Sources 

While it’s nice to have a major product or service or client, it is important to make sure your total revenues comes from multiple sources and is diversified enough that you can survive the loss of one or a few products, services or clients. 

Developing alternative revenue streams helps businesses ensure that there are always funds coming in, even during economic downtime and recessions. You wont have to lose a single night's sleep or your hair falling out due to worries.

So, If you haven’t added additional revenue streams in your business, it’s time to take the leap.