I’m taking a short break to refresh and gear up for more fantastic bookkeeping and small business insights. During this quick hiatus, let’s revisit another fan favourite from the podcast archive. It’s all about the 5 mistakes new business owners make, a must-listen for budding entrepreneurs.
Enjoy this episode and stay tuned for fresh content coming at you from next week.
Everyone makes mistakes but if we reframe them, we can make them into fantastic opportunities to learn, change and grow.
In this episode, I’m sharing 5 mistakes all new business owners make. Write these down so you don’t make them yourself or flip them around so you can change things up and do it the right way. I talk about common mistakes surrounding bank accounts, tax, business insurance, pricing, outsourcing and more.
- Mixing Personal and Business Finances: One common mistake is mixing personal and business transactions in a single bank account. This can lead to confusion, wasted time, higher tax costs, and the potential for missed deductions. The solution is to maintain a separate business bank account from the start.
- Not Saving for Taxes: Another mistake is not saving money for taxes. Self-employed individuals need to set aside a portion of their income to cover taxes and failing to do so can result in a tax bill that they are unprepared to pay. The key here is to open a separate business bank account for tax savings and consistently save a percentage of income.
- Lack of Business Insurance: Some new business owners fail to obtain the necessary business insurance, leaving them vulnerable to unexpected events. Make sure you consult an insurance broker to determine the appropriate insurance coverage for your business.
- Not Outsourcing When Necessary: Business owners often try to do everything themselves, even tasks they are not skilled at or that take up too much of their time. This can hinder business growth. The solution is to identify areas where outsourcing can be beneficial and start small, such as hiring a virtual assistant or a specialist for specific tasks.
- Underpricing: Underpricing products or services due to a scarcity mindset or by comparing prices with competitors can lead to financial struggles and undervaluation of one’s offerings. Conduct a thorough cost analysis, including all expenses, and set prices based on the true value provided rather than simply trying to be the cheapest option. Regularly reviewing and adjusting prices is also important.
Overall, keeping a positive mindset, learning from mistakes, and seeking individualised advice tailored to your specific circumstances will put you in good stead. I hope this episode helps you avoid some of the common pitfalls that new business owners fall into so that you can get ahead of the curve and set your business up for success from the get go.
Check out my free pricing calculator here to find out how you should be pricing your products/services!
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