Biggest Financial Wastes Startups Can’t Afford

Biggest Financial Wastes Startups Can’t Afford

A lot of hard work goes into opening a business. From the planning and raising of capital to hiring staff, there are many phases that must be completed for a successful launch. Once the business is up and running, it is all about maintaining operations and expanding your customer base. This is not the time to make costly mistakes. Make sure you take steps to avoid making the following errors.

Real Estate

You will most likely be renting your business space. This is true if you’re opening a clothing store, restaurant or accounting firm. Therefore, you’ll be paying by the square foot and will need to utilize every last inch of space. As with buying a home, it is a good idea to consider the future of your business when renting a commercial space. You don’t want to sign a lease on a place that you’re going to outgrow in a few months. You also don’t want too large of an environment that you won’t be able to cover in rent. Your commercial rental needs to be “just right.”

Bad Employees

Your staff will be a major contributing factor to how successful your business will become. Therefore, you have to be diligent with your hiring practices, and that includes a thorough background check. That background check should include a review of a candidate’s social media postings. If they are posting on social pages that are public, then you have every right to review them. Most recruiters will urge a jobseeker to review his or her timelines. It’s one of the reasons they tell people to delete old tweets as people want to hide anything that might show they are a bad investment. The amount of training that you’re going to provide to an employee is a valuable commodity. You don’t want that to become a costly investment that is wasted on the wrong person.

Sloppy Bookkeeping

Even before your first customer shows up to spend money at your business, you need to have a comprehensive bookkeeping system in place. It’s essential that you keep careful track of all expenses and income. There are also sales tax payments that you must be making. Additionally, there is the payroll accounting that has to be completed. There are many software programs that can help you with your business accounting. It might also be beneficial to hire an accountant and payroll service to make sure everything is well maintained.

Mistakes are going to happen in any business. The goal should be to recover quickly when mistakes are made and learn from the experience.

If you need a loan to help you get your small business started, we can help! Contact us to apply today!

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