|
10 Mistakes Every New
Business Should Avoid
1. Not creating a written business plan
2. Ignoring the internet
3. Inconsistent branding or your new business - such as choosing
a poorly thought out name for the business
4. Insufficient funding or lack of credit options to get access
to enough funding later on.
5. Picking the wrong business structure (C corp, S corp, LLC,
LLP, non-profit etc) Can cost you dearly from a tax perspective.
6. No financial reporting or inaccurate reporting, operating in
the dark due to poor accounting records.
7. Extending credit to your customers without proper credit
checks.
8. Poor product/service pricing and cost estimating. In my
opinion one of the surest ways to go broke in business is to
offer the best possible product - better than your competitors -
at a price below what your competitors charge. yeah, you may
indeed end up with a lot of business - but, if its not
profitable business then its really no better than no business.
9. Insufficient financial management skills - without
understanding more than the basics, the odds are greatly stacked
against your long term survival.
10. Poor hiring practices - trying to get yourself out of a bad
employee situartion can be much more difficult and costly than
you might think.
Les Bahr, CPA
www.mbwcpa.com
If you are interested, I have lots of information and helpful
guidance on our website in the form of a lot of articles I've
been writing for the site over the past 13 years or so. Go to
www.mbwcpa.com
|
