SMEs occupy a major chunk of the economy of our country, and their numbers simply tend to increase with each passing year. Setting up a business from scratch and running it can be an arduous task and it comes with its own set of challenges.
Amidst these difficulties, you have to make sure you take smart decisions to ensure your business does not suffer. Here are a few common mistakes that SMEs and startups tend to make, which you can try to avoid.
Mixing up funds = Major confusion
This is the most common mistake made by startups and SMEs. When running a business you should be very careful to not mix up funds from one account to another. Be careful about using money from your business account for personal expenditures. This is not only risky but can also lead to a whole lot of confusion, making things messier for you and your business in the future. Especially if more than one person has a share in the business, it makes things extremely chaotic.
This is a problem usually faced by startups. When you start a business, you shouldn’t get over excited about your new venture to such an extent, that you forget about the funding available to you and how much you require for bearing your future costs. Some startups start investing in having a fancy pantry, additional devices, over-the-top infrastructure or start over-hiring staff; leading to funding hassles in the future.
This shortcoming can lead to a variety of problems and this a common mistake which startups usually commit. Businessmen are usually so overly involved with running their business operations and with small daily issues that they completely forget the larger picture. It is imperative to see things from a macro level and not a micro level at a certain point in your business.
When you have a startup or you are running a business, it is essential to keep a track of your finances and manage them well. This is utmost important especially when you are seeking a loan for your company so as to not overestimate or underestimate the funds you require.
If you have made any other mistake as a startup or while running your business, feel free to share your experience in the comments section below.