Having a strong leader or management team not only adds value to the company today, but also provides a foundation to generate growth in the future.
As a small business owner, managing the day to day operations of a company can be challenging. Below are a few common business mistakes that are often overlooked but can be easily avoided.
1. Thinking “I can do it all myself” – You should use your skills to manage and grow the business, not to perform daily tasks that can be delegated.
2. Ignoring your professionals – Stay in contact with each of them throughout the year. The best time to solve or prevent problems is before they become larger (and more difficult to solve). Remember once the tax year is over, it is difficult for tax professionals to provide tax planning!
3. Relying too much on professionals – It is your duty to evaluate their performance. Remember as the business owner, you know the business BEST!
4. Falling behind in record-keeping – Procrastination is the enemy. When data is current, you will receive better advice from professionals and make more reliable decisions. Establish policies and procedures from the beginning for proper record-keeping and adhere to them.
5. Not using “reality checks” regularly – All bank accounts, customer receivables, inventories, and vendor payables should be regularly reconciled.
6. Not thinking ahead – Having a solid business plan makes the decision making process easier and more effective.
7. Co-mingling personal and business assets and liabilities – The business’ bank accounts, credits cards, loans and fixed asset titles should be in the business name and not used for personal transactions.
8. Failing to back-up business data – Your company records should be backed up on a regular basis and kept in a secure location.
9. Overlooking the importance of cross-training employees to backup/support each other – Teamwork is a crucial part of running a successful business. Be sure your employees understand their role in the company and how their actions contribute to the company as a whole.
10. Not defining your business. – You can’t be all things to all people. Don’t set yourself up to fail by promising something you can’t deliver.
11. Neglecting your power – Being a leader is important to the company as a whole. Set an example by taking initiative and promoting teamwork!
12. Using improper passwords– The most common passwords (and easiest to discover) include birthdays, your children’s or pet’s names and popular celebrities. Use a mix of numbers, caps and letters that is easy for you to remember, but hard for others to identify.
For more information, contact Padgett Business Services in Bothell, Washington at (425) 408-1695. We handle your accounting, tax (personal & business) and payroll needs – so you can focus on what makes you money. Serving Bothell, Lynnwood, Kenmore, Mill Creek and surrounding areas.