Ways to avoid the 7 most costly mistakes business owners make:
- The number one mistake business owners make is thinking they can do it all. You must realize we have experts for a reason. You wouldn’t want a Dentist removing your Gallbladder no more than you would want a Bookkeeper doing your Collections. They must know logistics and have skills for each of those. Each are great in their own area of expertise.
- Another area that get businesses in trouble with the IRS is mixing personal and business finances. If it is business it should come out of your business account and if it is a personal purchase those funds need to be moved to a personal account and written out. You cannot mix to two and expect any legal type of protection.
- Don’t miss deadlines. Filing the different documents, you need for your industry. Each industry is different however taxes and filing estimated taxes, payroll taxes and income tax is typically the same. Don’t miss those deadlines.
- Cutting corners. This is a different area to look at using professionals in their industry. If you need a contract that will hold up in court, you don’t want to necessarily find one on line as that is not written to protect you. Using an online software to do your taxes when the professionals know what to ask for. You could be missing more deductions and pay more overall. Now using refill ink printer cartridges may be wise do your homework before purchasing a used printer. Cutting corners in NOT the way to go.
- Not keeping good records. You may need to hire a bookkeeper or at least a VA to help in this situation. You want to be sure you are documenting all expenditures. You are spending the funds just make sure you can prove where and why.
- Are you pricing your products or services correctly? It is hard to determine what the market holds and how to price. Typically keeping in mind clients usually go for the middle pricing you don’t want to be the least expensive not do you want to be the most expensive. Here is a guide to help with pricing.
- Don’t over promise and under deliver. It would be wiser to under promise and over deliver. No one minds when you deliver goods or services earlier than ETA but no one like to get something late. That is the fastest way to ruin you good reputation. Customer Service is Golden and EXPECTED.