Video Widget

video

SOME OF THE NEEDS WE SERVE

  • Fast Growth Companies
  • Start-Ups
  • Payroll
  • Working Capital Needs
  • Bank Turn Downs
  • Turn Around Situations
  • High Concentration Customers
  • Maximized Credit Lines
  • Bank Workouts

4 Common Mistakes Every Entrepreneur Should Avoid Including Cash Flow Projections

//4 Common Mistakes Every Entrepreneur Should Avoid Including Cash Flow Projections

4 Common Mistakes Every Entrepreneur Should Avoid Including Cash Flow Projections

4 Common Mistakes Every Entrepreneur Should Avoid Including Cash Flow Projections

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

4 Common Mistakes Every Entrepreneur Should Avoid Including Cash Flow Projections

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Common Mistakes Entrepreneurs Should Avoid4 Common Mistakes Every Entrepreneur Should Avoid Including Cash Flow Projections

Among common mistakes entrepreneurs make is cash flow projections.

While this is only one common error, below are several that may help you avoid some pitfalls.

Statistics show that out of 24.7 million businesses in the United States alone, only 66 % of it will be able to sustain after two years. And, after four years not more than 45% will be able to remain open. This is because many entrepreneurs commit mistakes which could have been avoided if only they made themselves very well informed of things such as the following:

Failure to appoint a CEO

Some businesses start with having business partners making decisions which will be approved through a consensus. Every business partner seems to be in control of everything because they do not have an appointed CEO. Running the business in this type of leadership may prove to work well during the first few months or years of the business. However, when certain critical issues get in the way, business partners may start having problems with regard to who’s in control. Add to that the possibility of finalizing a decision which in turn would only hurt the most crucial aspect f the business. When starting a business, it would be best to have someone who would really take the role of the CEO who will be in charge of the most part of the company’s success or failure. Failure to appoint a CEO could spell disaster to any business especially if individual differences and opinions get in the way towards achieving the best decision. It is enormously important for every business to have a number one leader who will be looked up to by the rest of the people involved in it.

Inaccurate cash flow estimation

Start up costs and all the other expenses needed right from the beginning must be projected very well. This is to ensure that the company will still have enough money to get the business running at the start when enough profit is still so hard to come by. Overestimation of cash flow projections must be avoided. It is also important for every entrepreneur to ensure that gross margins will meet with the projected estimations. These things can greatly affect your financial needs which may lead to problems such as needing more capital without having enough resources. Before starting any business, entrepreneurs must ensure that they will have more capital than they think they will need.

Accepting too many roles

Being talented may prove to be such a great help in running a business. However, when the business is still on its beginning stage every entrepreneur must decide which role to focus on. Accepting too many roles would also mean doing too many things at the same time. As a result, one will not be able to achieve the best and most desirable level of performance for a start up business. This also goes to say that when an opportunity knocks, it has to be scrutinized first. One cannot just keep on accepting too many responsibilities or else he will lose focus on the most crucial part of running a business.

Starting out too high

When the business is still starting to obtain ways on how to reap profit, entrepreneurs must avoid spending too much on things that are less important. If you think that the business will not be adversely affected by just using low quality tables, chairs, and any other not so crucial equipment. The same should also be true in terms of giving compensations and benefits. Everything must be kept within humble levels to ensure that the capital spend will not run out long before the expected profit is earned.

Running a business can be a real source of stress and anxiety especially for budding entrepreneurs. But, once you see to it that you keep yourself abreast with the things to avoid and things to do, you will greatly spare yourself from the risk of leading your business to a downfall. Continue searching for more information that will help you become more knowledgeable in running a business, and you will be on your way towards achieving success.

By | 2016-10-14T00:09:21+00:00 December 3rd, 2013|Uncategorized|0 Comments

About the Author:

Leave A Comment