Nibletz Staff
Business isn’t all about the money. I get it; business often involves passion, friendships, social good, and life-changing innovation. But none of that changes the fact that money is extremely important. After all, it’s what will keep your business afloat. It’s what will allow you to pursue those passions.
It’s crucial that you avoid financial mistakes as you run your business. Here are some of the most common – and most dangerous – mistakes you can make at your company.
Starting without enough capital
We get it. You want to start something now, not later. After all, aren’t you more likely to get more money if you get that great business idea out there as soon as possible? Well, if you rush into things that you can’t actually afford, then you’re going to run into some big problems. There’s the effect on quality, of course. Rushing something rarely ever results in a masterpiece, after all. But if you don’t have the right cash to hand to begin with, then where are you getting the money from? Untrustworthy, quick loans? Family bank accounts? These methods are begging for financial trouble.
Hiring too many people…
On the surface, it makes sense. Hire as many people as you can and you’ll be assured of quality. More hands on deck and all that, right? But if you’re hiring people you don’t really need, then you’re just throwing money away. Recruitment is expensive, after all. When you spread the work across too many people, then you end up with employees who simply aren’t doing enough to justify their salary.
…and not managing them properly
Maybe you hired sensibly. You hired just the right amount of people, and you hired the best of the best of the best. That’s what their resume says, anyway. But do you know if they’ve actually been as productive on the job as they appeared they would be? You should be monitoring your employees, getting ready to give in-depth feedback. If their performance isn’t up to scratch, then you’re technically wasting money. After all, their salary is what you’ve paid them to be as productive as they made themselves out to be!
Having inept accountants (or no accountants at all)
Not all accountants are the same. If you don’t really understand the job all that well, then you might mistakenly believe that simply “having an accountant” is enough. But you don’t just need an accountant – you need a good accountant. An accountant that can’t do their job properly risks putting your entire company in financial trouble. If anyone in your financial department needs F&I training, then look into it. And if you don’t have any accountants at all then… well, what are you doing? Go get some!
Buying things you don’t need
Yes, we’ve all heard it a million times: you’ve got to spend money to make money. But that doesn’t mean you should buy every single utility you think an employee would get some use out of. You should be very selective about the equipment you buy. Invest in the things you really need, and get cheaper alternatives if they would do the job just as well.
