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Most common mistakes made by young entrepreneurs

Lucas moore December 26, 2012 1139

In the present corporate world we witness several new companies emerging every day and then fading off gradually. Only few carry on with their operations for a long time, rest others collapse soon. The reason behind such downfalls is not the tough competition that prevails in the market but is the prevalence of pitfalls in the functioning of the company. Many budding entrepreneurs don’t realize the common mistakes that they make, which accumulate over time and ultimately lead towards the shutdown of the company. Through this piece of article I would throw light on some of the common mistakes that most of the young entrepreneurs often make. Keep them in mind and never ever repeat them. Below is the key list-

1. Failing to manage finances efficiently: This is one of the major mistakes made by many young entrepreneurs. They opt for manual accounting to avoid spending some amount over a decent accounting software. Later they fail to pay exact amount of tax which accumulates over time and ultimately falls heavily on their head in the form of lump of fine. This heavy fine either leads to shut the progress of the company or the shutdown of entire business unit. To avoid such a scenario, it is advisable to buy an accounting software that can meet your needs at low cost. Buy a software such as Sage 50 Accounts and educate your employees how to use the software efficiently with the help of Sage accounts courses to see your company growing in a risk-free manner.

2. Over investing: Many young entrepreneurs make the mistake of over investing in the business. They often spend chunk amount of capital over ritzy offices, expensive equipments and other facilities which can be bought in a lesser amount. At times young entrepreneurs spend over such things which are totally unnecessary. You must not do any such thing. You might have sufficient funds for starting and running a business but that doesn’t entitle you for over spending. So, make good use of your resources and invest carefully.

3. Not paying yourself: It is important to understand that the company account is nobody’s private account. Many budding entrepreneurs often commit the mistake of mixing their personal life with their professional life. They don’t pay themselves and utilize the company account for personal reasons too. It is certainly not a wise decision. Pay yourself a fixed amount and keep separate personal account and company account to manage the company accounts efficiently. Even at the time of slow or stagnant growth, don’t let your professional affairs hamper you personal life.

4. Failing to pan well for risk management: Planning for risk management is very important for any business. There should be an efficient risk management plan to pull out the business at the tumultuous times. Many young entrepreneurs fail to do this. They must not make a risk management plan on the basis of vague ideas and estimations. Using a planning and forecasting software like ‘Sage Planning for Business’ can be of great use in this respect. Even if one doesn’t know how to use the software, he/she can learn the same by using a Sage course and efficiently use the software for risk management and planning.

About Author:- I am a blogger by profession. I don’t constrain myself with only a particular style or arena of writing. I write on various topics ranging from Sage IAB Training to Microsoft training and from teaching tips to lifestyle. These days I am writing more about Sage 50 certification as this sector is growing at a very fast speed and people are keen to know more about it.

Article keywords:
Sage eLearning course, sage online qualification

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