It’s a new year, and people are focusing on how to make 2014 their best year yet. Some people make resolutions about getting healthy or about improving relationships, but there are a lot of people that are focusing on improving or starting their own business. Financial goals are common New Year’s resolutions, but it’s difficult for some people to reach them. If you want to improve your business or start your own business this year, make sure you follow this advice.
Starting out with low funds
Saying that you need money to start a business may seem pretty obvious, but it isn’t uncommon for some people to start their businesses without the money they need to thrive. You may not be expecting much during your first few months, but some business owners tend to still have overly optimistic expectations about their business’ money making potential. You may be able to keep your head above water now after taking out a few extra loans, but when the interest on them keeps growing and you aren’t getting enough customers those few small loans can cause big financial problems. Pour over your books and make sure that you have enough to keep everything running smoothly until you find your reliable customers and start making money.
Taking out loans when you truly don’t need them
It was just stated how important it is to have enough money on hand when you first start your business, and loans seem like an attractive option to have some extra money around in case of an emergency. The bank may be willing to give you a substantial loan, but that doesn’t mean that you should take it. Loans should be a last resort option in any financial situation, and that’s especially true for business owners. Borrowing money just adds more financial stress to your business, and that financial burden may eventually become too heavy to bear.
Relying on one stream of revenue
When you’re first starting out, it makes sense to focus on marketing and selling your best selling product or service, but if you’re still doing that after a few years you could be regretting your decision. You don’t want all or the majority of your revenue to come from one source. Every investor will tell you about the importance of have a diverse portfolio to be safe. Your business’ bread and butter could run out in a few years, and if you’ll need to have plenty of other sources to rely on.
Not getting professional financial help
Even if you hold a degree in finance from a prestigious university, it’s always best to have someone else’s professional help for your business’ financial needs. Some business owners can get too wrapped up in the emotional side of running a business, and their overly optimistic attitude about their business’ success could influence the way they keep track of their finances. Always hire someone to do your taxes and find a professional to perform an audit report. Having professional help won’t just help ensure that your finances are in check; it’ll also give you more time to focus on running our business.
Jennifer Dee is a Philadelphia blogger that loves to give advice.