Common small-business mistakes to avoid: Part 1
March 19, 2015

When you invest your time and money in a small-business venture, you want to ensure that you get a good return. In addition, you want to see your operation succeed. Having a good marketing strategy, along with promotions and quality customer engagement, will help you achieve your goals. However, you also want to think about common blunders that might set your business back.

Financially, you need to ensure that your small business makes the best possible decisions.

Have a reserve
Keep extra cash on hand for your operation. This is especially important if you are just starting up. Business News Daily noted that in most instances, your operation might take awhile to reach a point where you can count on steady income. You'll need to invest in equipment, electric payment systems and inventory. Start off with enough money to successfully operate and pay for emergency issues that may arise.

Do not depend on a credit card
While a credit card can be used as a tool, it is important to remember that using that plastic too much can get you into financial trouble. High interest rates and annual fees can really add up. It might leave your business down the road to financial turmoil.

If you do use your business's credit card, ensure that you pay your bill on time, every time. In addition, make larger payments when you are able. You will want to avoid having a bad credit score. Check how you have used all of your cards and make any necessary adjustments to your spending habits.

Another tip you might consider is only spending money using your credit card if the purchase will add to your business in some way and contribute to higher profit. For example, if you operate a restaurant and you currently have one grill, purchasing a second grill might speed up the cooking process and get more customers food faster. This would be an especially beneficial purchase to make if you are currently struggling to keep up with the orders that are placed.

Be smart when hiring
Whenever you decide to hire a new employee, it is important to first consider whether you can afford to pay another individual. Fox Business noted that the process of training an employee can cost you resources such as time and money. It is also important to ensure that you hire quality employees. If you hire someone who does not work out, you waste your valuable resources and have to go through the process again.

Nexus: G-WEBCD3