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Beginning Entrepreneurs – Worst Financial Mistakes in Business

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Pde » Credit Access» Worst Financial Mistakes Of Beginning Entrepreneurs

A great part of beginner entrepreneurs when they are about to start a new business or idea is to have a concrete growth plan, then have the discipline set to conduct the best actions efficiently. Being part of a small business, fintech or startup is not always glamorous, often requires simplicity to have to undergo a structured structuring and growth process.

In addition to managing the business as an owner, entrepreneur or entrepreneur beginner when creating your product and determining your business model, it is crucial that you have a customer mentality and then an entrepreneur. Without such a scoop, a disaster may occur in the middle of the course.

What are the financial mistakes of beginning entrepreneurs

What are the financial mistakes of beginning entrepreneurs

When opening a brokerage, off-line or online business (e-commerce), many new entrepreneurs are usually more concerned about making money (this is understandable), however, they forget that the key to having a sustainable business is to have a good product for clients to be faithful, to be evangelizers and others to buy in the long term.

Like everywhere in the world, the entrepreneurial life of those who start a business in general is full of ups and downs, and especially for beginner micro and small entrepreneurs. In the course many errors are committed, some repairable, others not so much. To minimize these errors, which by the way are not only 10, they are much more, but this is the number that we list of the biggest mistakes made by Brazilian entrepreneurs and other nationalities. Let’s see what they are: 

Top 10 mistakes to be avoided by entrepreneurs

Top 10 mistakes to be avoided by entrepreneurs

1. Spending the money that has not yet been earned: for some, having money in hand is a danger, never that a cash amount in the company’s cash is your personal money, there are expenses and operating costs that need to be paid with the revenues of the business. Do not spend cash from the cashier with personal priorities.

2. Thinking you have no direct competitors: It ‘s exciting to create a new product or new business and this can lead novice entrepreneurs to feel that they have no direct competition, or that your product is the best in the world. Always think that competition can appear and even better.

3. Not having a set plan with realistic goals: Beginning entrepreneurs are so passionate about their creation or “great idea” that they often deviate by following an impromptu and unsound plan. However, every business only survives if it has business plans with realistic and achievable goals to thrive.

4. Do not think about marketing actions and social media: “If you work, they will come.” This is a common belief (sometimes conscious, sometimes not) among new entrepreneurs. Many people think that their products and services are so revolutionary that they can only rely on offline sales and word of mouth.

5. Do not have control over the cash flow: new entrepreneurs usually do not have the habit of planning their financial life and consequently carry this bad habit for the business, not really knowing how much it enters and how much leaves the business puts the venture at risk .

6. Making investments without administrative control: This is a recurring problem, while many are cow’s hands for investments, others think only that can lead to success. To make investments you have to take into account the local reality, the size of the business and the prospect of monthly and annual sales.

7. Do not have the discipline to make concrete decisions: without emotional control and discipline to act at the right time. This is one of the main weaknesses of beginning entrepreneurs, especially actions related to financial investments and working capital and financing for companies and businesses.

8. Do not economize to reinvest: there is a deadline to spend another to earn, not to allocate a part of the cash profit to the cash flow or working capital account and another to the capital reserve is a shot in the foot.

9. Do not manage a global business plan: that is, every business is not only focused on the financial sector, it is necessary to know that a business has several phases, steps and processes that together make profit appear, everything is related. Doing financial management with balance will certainly make other strategic actions contribute to the success of the company.

10. Do not solve problems with creditors or suppliers: it may be that one hour the financial lack of control reaches one or another sector of the company, then, in the face of debt or financial crisis it is essential to negotiate directly with creditors and suppliers to propose friendly and favorable solutions.

Conclusion: impairment

 

Finally, we know that we are liable to make mistakes both in personal life and in small, medium and even big business. Here, we’ve listed only 10 errors to help you improve your financial management with your venture.

Always try to be committed to efficient organization, discipline to manage, the power to co-create and balance potential problems.

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