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Running a business (big or small) is not a bread and butter stuff. It’s a daunting task as businesses take time to grow and mature. In fact, greater percentage of so many small businesses struggle to survive their first year of operation.
This is why it is therefore important to get things right from the beginning. You have to start off with the right people, create the best structure and manage your finances well in a prudent manner.
Having a healthy business finance is one of the most important things in entrepreneurship. It’s an aspect of business management every young entrepreneur aspires to get right. A well-run company or business will have a healthy finance and a good business credit.
Small business mistakes and their actual costs
As an entrepreneur, it’s easy to make costly small business mistakes that will leave you bleeding green instead of accumulating cash.
This usually happens whenever an entrepreneur starts a new business. One of the biggest small business mistakes is choosing a sole proprietorship instead of another business entity.
An entrepreneur starting a new business probably doesn’t realise that they’re costing themselves a lot of money by not selecting the right kind of business structure from the beginning.
Another small business mistake that can be really costly is not keeping accurate, complete records of the business. Are you also making some of these mistakes?
The infographic below, courtesy of 1800Accountant.com, highlights the top small business mistakes that cause problems with taxes, the inland revenue, and cash flow.
The main aim of this infographic is to remind entrepreneurs why it’s important to start a business on the right foot in order to avoid the financially damaging mistakes small businesses often make.