An endless day at work and all you can think about is what if you were your own boss? Striving ceaselessly for the higher ups, we can only wish for putting in that effort for ourselves! But running a business is not as simple as it may seem. There are little nuances that need to be attended to and more often than not, entrepreneurs miss out on little details that would in the long term effect the profitability and synergy of your business. A peek at these oversights :
1. Extravagant launch expenditures :
The temptation of giving in to extravagance when you step into a new venture is quiet common. Customising furniture, branding accessories and offering convenience to employees and customers sometimes come at a high price. Keep your eyes on the prize and concentrate on the essentials. With more success, you can always keep raising the bar as you move along!
2. Overpaying Taxes :
Of course its critical to have your paperwork in order and pay taxes, but more importantly keeping track of all your expenses, whether they are taxable or not is essential as well. More often than not we overlook little expenses, like travel expenditure, hospitality receipts and more. These could be deductible depending on the scenario and can help save you from overpaying taxes.
3. Controlling Expenditure :
It is very commonly noticed that an inexperienced entrepreneur gets carried away when he looks at the businesses around him or his competitors. The urge to spend more on developing business is but natural, but it is also important to know where to draw the line. Recruitments that do not offer value for money no matter how small the expense, sales expenditures over excessive meetings and other benefits need to be reviewed periodically. Nothing is more important than profitability, after all the promise of more business is not the same as more business!
4. Cash Reserves :
Maintaining cash reserves are as critical as running the business in today’s day and age with unexpected scenarios knowing on your door when you least expect it! It could be a reimbursement, a tax oversight, a vendor payment or logistical expenditure! Fines and dues could shake your confidence and in turn your business, but with a surplus stated for emergencies, you can always breathe easy. Ideally, two months operating costs in had would do the trick in most cases!
5. Focus on productivity, not keeping people busy :
This is an often viewed phenomenon. Employees looking busy or being stuck with chores that are unproductive not just affect the business but also their morale. This of course, impacts the business since productivity is directly proportional to profitability if all other variables are under control. So, take time out to understand what the difference between keeping the employees occupied and keeping them productive. After all a happy employee is a productive one!
6. Early on diversification :
With the focus on growth and expansion sweeping over businesses, entrepreneurs tend to give in to diversification of their product or service portfolio rather early. Your business needs you to invest continuously, either in the form of time, effort or money so that the profitability margins stay high. So ensure that you are top of the game before diversifying your business interests!
We know that these simple pointers will help your business go a long way. So if you feel the need to follow your heart and be an entrepreneur, make the move.
To know more about ways to ensure success in this globally competitive digital scenario, drop us a line at askus@codelattice.com
