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2 Nov , 2010
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- Lack of cash. Believe it or not, a business can have plenty of profit but if there isn’t enough liquidity or ready cash then they are still at risk of failure.
- Improperly Managing Accounts Receivable Accounts receivable are the amounts your customers owe you. The best way to avoid Mistake #2 is not to have accounts receivable. Get paid in advance or receive payment at the time of service.
- Over-Expansion Too much too fast can sound like a problem you “wish†you had but in reality, it can be a serious issue that leads to an early demise. Increasing staff and inventory, capital assets and take on additional space before cash comes in to cover the cost can easily lead to too little, too late. Your business may now be in a very vulnerable position.
- Too Much Time Setting Up Instead of Getting Business Planning can be a good thing, but there are some business owners who must plan everything out and get everything organized before they start. This can be a good skill to have, but it can mean failure to a new company. Sometimes it is an excuse to avoid going out and asking for the sale. Solution: You must SELL First! Get money in the door or you don’t have a business. You must collect money and have cash before you can organize anything.
