Many people dream of starting their own business so that they never need money again. However, about 80% of aspiring entrepreneurs fail and close their firms in their first year. Of course, one of the reasons for the failures may be the unstable economic situation in the country. However, the most common problem is the wrong organization and management of the business. In this article, we will look at 7 main mistakes that businessmen make when starting a company.
Mistake 1: misallocation of finances
Most businessmen have a common budget for their business and personal needs. This is the biggest mistake. It is necessary to separate funds for the development of the company from the family budget. The money of these two directions must be balanced and not mixed.
For every area of life, including business, you need to plan finances. All transactions must be recorded by recording expenses. At least in the future, there will be no questions about where the specific amount went. You can keep such financial records using special software - a program for service centers, Gincore. With the help of this software, you can not only control money, but also increase the efficiency of your business.
Mistake 2: insufficient financial control
In any company, there is a constant financial turnover: the account receives profit from transactions and sales, and then payments of salaries to employees, development costs are made. If you do not control the cash flow, then there will be a constant lack of resources for some purposes. Wrong or insufficient distribution of money, lack of financial control, leads to many problems and losses.
You will need a service center program to keep track of your company's finances. This software records all transactions, you will be able to control all flows and distribute money as intended, and you will also be able to create a cash reserve. In this case, your business will be protected from many force majeure circumstances.
Mistake 3: personal spending from company finance
If you are planning to make a large purchase for yourself, and for this you take money from the company's income, then you risk causing damage to your enterprise. These finances are intended only for the development and stability of your business. No personal purchases can be made at the expense of your company.
A responsible businessman should set himself an acceptable monthly salary. This money can be used for personal needs, but more than this amount should not be withdrawn from the company's budget. It's not for nothing that successful people say that money has to work, so company finances will ensure the stability of your business. The service center management program has the ability to pay salaries to all employees, including the head of the company. This option is configured and works automatically.
Mistake 4: Lack of financial reserve
Any company must have a financial reserve. You need to distribute money in all directions, as well as have a reserve for unforeseen expenses and force majeure. This amount can save your business from collapse, so prudent entrepreneurs create a financial reserve in advance and replenish it periodically. Gincore, a service center maintenance program, will help you control financial reserves and money in general.
Mistake 5: unplanned investments
Some businessmen are constantly investing money in their business; some transactions are made impulsively and without thinking through all the risks. It is necessary to develop the enterprise gradually, and investments should be made only if there are funds for them. It is impossible to skip several stages of development at once, achieving success in the shortest possible time. At the development stage, you will not be able to protect your business from all failures, therefore, before each deal, you need to calculate all the risks.
Mistake 6: relaxation after the first successes
Having experienced your first successes in business does not mean that you can already relax, give up control and do whatever you want. Success and profit will not always accompany you if you stop working. As a rule, victories are short-term. Don't lose your head and keep working for stability. Gincore, a service center CRM system, will help you with this. It conducts all types of maintenance, controls finances, the work of subordinates and automates many work tasks. In addition, the program provides statistics, analytics and all business metrics. By studying this data, you can avoid most of the problems and lead your business in the right direction.
Mistake 7: lack of innovative technologies
Now for business there are many ready-made cases, development strategies, projects, software solutions. It is impossible to build a successful business without these tools. Using the software for the service center, you will keep up with the times. Gincore is the best system on the IT products market. This is a maintenance program for service centers maintenance, workshops, online and offline stores, beauty salons, rental services and other areas of business. Many entrepreneurs around the world are now using this program and are achieving success. Start using Gincore to soon increase your income and take your business to the highest level.