Sara El Kareh
When you are a small business owner, you are aware of the difficulties, failures and successes your business will face. Also, you know the precautions to take in order to protect your business. Many mistakes are committed in this regard and must be avoided in every possible way; or else, you will lose your entire business instead of leading it to success. Below are some mistakes that you can avoid in order to prevent yourself and your business from failing:
- Spending: this is a common mistake that most small business owners to not pay attention to. They start spending too much, and get confused how to pay all the bills when they are due. It is important to know how to spend your money and how to spend it so you can make profits. When you don’t pay your dues, you won’t be receiving supplies and satisfying your customers. Therefore, you should know your budget and make sure not to spend more than the planned.
- Saving: Make sure you follow some methods in order to save your money. You can do that by not spending it on the unnecessary. The marketing expenses are not included in this case. You must cut out the expenses that you see are increasing in a fast way. You can learn how to reduce electricity expenses; in other words, you can reduce your least effective working hours by closing the company at this time of the day. You can also cut out expenses on the ineffective ads. Even though it is very important to advertise, yet you must know what ads are helping the company and which are not.
- Accounts Receivables management: When you start a small business, you need to employ people who are responsible for getting the money owed to your company. You cannot give your customers a month or more to pay for what they have bought. Or else, you will lose control of the money they owe you and will lose track for collecting them later. You need to let your customers pay on time and never being late. You can manage to make them pay on a weekly basis with their credit cards for example. In case they are late in paying for their purchases, make sure you impose interests or penalties to force them to follow your policies.