5 Big Business No-No’s When Starting Your Business
Starting your own business is exciting. Being able to follow your passions and create something of your own is an experience every person should be given the opportunity. Many though can be overwhelmed with the nitty-gritty that comes with setting up and running a business, that they simply give up on pursuing their dreams.
Candice Montgomery, however, is not about to let this happen on her watch. Course creator and online educator, Candice is the founder of Candice Montgomery LLC, and is making it her mission to help new and aspiring women entrepreneurs. For those who have no idea where to begin, Candice teaches women the business basics they need to set up their own company and make it through the first few years!
Below Candice outlines the 5 big business no-no’s to avoid when it comes to starting your business.
1. Not Keeping Your Finances Separate
Having a new source of income is probably one of the most exciting things about starting your own business. Nothing is as satisfying as seeing the dollars in your bank account increase, especially by doing something you love. One of the biggest mistakes new entrepreneurs make however is not keeping their business and personal finances separate. I know it’s tempting to just be able to pay for an item or holiday you’ve been wanting for a while with the money now coming into your account, but please don’t!
For your business to succeed in the long term, you need to know exactly how much money is coming in and out of your business, for your business. This will not only help you when the IRS comes calling, but will help you put a budgeting plan in place. Make sure you don’t pay yourself any more than what your budget allows. Also make sure personal purchases are being made from your personal account only, and business expenses are being withdrawn from your business account.
2. Over-Relying on Your Accountant
Another common mistake too many entrepreneurs make is over-relying on their accountants. By the time tax time comes around, it can be too late to review your finances. You need to know exactly how much money is coming in and out of your account at all times. This will help you stick to your budget, or adapt it as needed. You can do this manually by using a spreadsheet or go old-school and use a ledger. If your budget allows, one of the best ways to keep track is using a software like Xero, that automatically tracks everything for you.
It’s also vital that you know your tax and filing dates well in advance, so you can anticipate when those large payments will be coming out and work them into your budget.
3. Using Personal Details
Do not, I repeat DO NOT, use your personal details for business purposes. Aside from the obvious safety concerns, your personal address and phone number should not be made public under any circumstances.
If you are operating an online business from home and need a registered business address for tax and legal reasons, it’s fine to provide your Secretary of State office your home address. But for anything else, use a post office box or register your business mail to be picked up directly from your local post office if needed. These days most people simply communicate via email, so set up a business email, and if needed, a business phone number. If you don’t want to register with a service, there are plenty of software options out there such as Twilio that provide you with a phone number with various payment options.
4. Trying to Be Something You’re Not
Just as with anything in life, the phrase ‘don’t try to be something you’re not’ also applies to business. Not only does trying to be something or someone you’re not presents a whole host of problems, your customers will see right through it. Remember your why! Why did you start this business? Just by being yourself your business will be unique and stand apart from your competition.
5. Catering to the Masses
Another of life’s phrases that applies to business in every sense, ‘You can’t please everybody’. Not every person is going to resonate with you or your product. So, take the time to identify and really get to know your ideal audience. Think about your own values and who your product or service will actually benefit. Ask yourself questions about them. What are their biggest problems? What drives them? Who do they already buy from, etc? This will help you create a client avatar you actually align with.
Don’t let the nitty-gritty hold you back from starting your own business. Keep these 5 things in mind when setting up your new venture and download Candice’s free business checklist here. To learn more from Candice, or to work with her, get in contact with her here.