As business owners, we’re focused on running our business. Every day brings new challenges, opportunities, and decisions. We can’t plan for everything, but there are
some common mistakes that consistently cause businesses to fail. The key is to know what these mistakes are and take action to mitigate the risk associated.
All too often we see our clients using outdated or incomplete financial information. They have cash in the bank, so things must not be too bad. Your cash balance is only
one aspect of your financial position, and without a solid accounting and reporting mechanism, that cash can disappear real fast. That is one of the common mistakes.
Business owners don’t know what their business is worth. That can lead to several problems, including: being under-insured, missed opportunities for growth due to low
liquidity, or difficulties in obtaining financing, just to name a few.
Some other common mistakes are owners thinking “that will never happen to me,” or “there is plenty of time for that.” I can think of so many cliché’s that were created
because of that kind of thinking: “No time like the present,” or “Don’t put off until tomorrow what you can do today.” With the proper planning and organization, owners
can put a lot of their worries to bed because they have the right safeguards should something unfortunate happen to themselves or their business.
Another common mistake is owners thinking that you can’t beat Uncle Sam. While he may get his share, the mistake to avoid is giving him too much. Business owners
should put themselves in the most tax advantageous position to use any parts of the tax code to minimize the amount of tax their business pays.
The good news is, these mistakes and the losses and frustrations that go along with them can be avoided. Business owners just need to ask the questions, and make
sure they get the correct answer. Our goal at Williams, Crow, Mask is to keep you in compliance and help you build and protect your business. If you would like to attend a
workshop discussing the common mistakes business owners make, please contact us for information. We can be reached at firstname.lastname@example.org.
By: Kirk Mask