7 Bonehead Financial Mistakes Small Business Owners (Always) Make

Finance Company | August 09

While as noble is the idea of starting your own small-scale business is, it is by no means any easy. Many venture this path, only to end up with financial losses. Why, you ask? For one, over the course, they make some poor decisions; and second, when needed, they shy away from seeking professional assistance.

Very common finance mistakes that many small business owners always make. Steer clear of them and make your way to success rather easily.

Ambiguous and unachievable goals

Every business must have definite goals written clearly. But unfortunately many people overlook the relevance of having goals. While there are those who have very vague targets, others set some goals that are simply unrealistic. And don’t even get us started on business owners who have no goals altogether; they are just shooting in the dark.

Don’t be one of them. Write achievable and motivating business goals clearly and make your financial decisions accordingly.

No definite budget

Not setting a specific annual budget is one of the biggest mistakes. Thinking you’ll spend as you go would eventually leave your company undercapitalized or overcapitalized; overcapitalization is by no means a good thing, considering it often leads to unnecessary expenditure, which is in itself a loss. Sure determining how much budget does your business needs, what areas or departments need more investment- all these takes time. But believe us- it’s very well worth it.

No team to rely upon

Running a business is a team work. Take any successful company for example- there were ‘founders’ and not ‘founder’. Having like-minded people around you- on who you can rely and trust with your finances and other needs- is quite important. So if you haven’t already assembled a winning team, do it!

No predictive analysis of the market

Understanding your market is very (VERY) important for the success of your business. You must know its past and current trends, along with competition level and overall economic condition. With the information you must analyze for future trends. It will help you know what’s in store for your company in future and you will be much prepared for any uncertainty. Hire a good finance company in Mumbai or Kolkata to help you with this.

Not conducting customer research

Some business owners get so busy with what they are offering and how they are offering, they simply overlook the specific needs of their customers. You must conduct a thorough market research on your customers- who they are, what is their budget, what are their needs and, most importantly, where you can find them.

Approaching traditional banks

Those long and tedious days when you would approach the traditional banks are gone- gone for good! Today there exist many dedicated financial companies who offer business loan in Mumbai and Kolkata. Catering specifically the small scale companies, their loan granting process is beyond exceptional- quick, less paper work, and low interest rate. Approach them instead of the traditional institutions.

Not seeking professional help

Every business owner needs professional help of finance companies in Mumbai and across. Some are smart enough to go for it, others are not. If you think you can use industry experts by your side, not just with finances, but for the overall functioning of your company, you should definitely go ahead and dial such experts. Often a small investment in financial services of the professionals unlocks the door for big profits and success.

These are the 7 common but deadly mistakes- with their solutions- that many new business owners make. Avoid them transcend yourself from ‘rookie’ to ‘pro’.