In the current scenario, when the government is so supportive towards startups, the charm of becoming your own boss increases by manifolds. Well, that is undoubtedly a great idea. But, running a business and a successful one at that is easier said than done. It requires a lot of determination, hard work and proper planning.
However, this is definitely not impossible what with so many success stories making the rounds of the business circle. All you need to do is be ready to put in your best efforts while also getting a grip on the finances.
The financial angle of the business is extremely crucial. Minus this, there is no way you can make a success of your business. In fact, one of the major reasons for most failed businesses is the bad financial habits of its owners. Yes, you heard it right! Your financial habits have a direct impact on your business.
So, if you really want your business to thrive and grow, make sure that you steer clear of these terrible financial habits for business.
Not Keeping a Tab on the Credit Card Usage:
Well, there is no denying the fact that for the efficient functioning of business, you need a lot of things like equipment, office supplies, furniture and what not. With a credit card in the pocket, you are surely well equipped to buy all this and more. But, do you have to capacity to clear all the bills? If you are answering this query in affirmative, then go for it! However, if you feel that there is no way you can clear the credit card dues quickly, don’t use it. You might end up compromising on your business to clear your dues, thus ruining it in the bargain.
Overlooking the Need for Loan Repayment:
If you have taken up a loan for your business, you are expected to pay the monthly installments on time. Forgetting to do this or ignoring the need to repay can have a major adverse effect on your credit score. What’s more you may end up a debtor and be forced to wind up your business.
One Account for Business and Personal Needs:
Believe it or not, this is one of the most terrible habits for business. If you maintain a single account for your personal requirements and your business, there is no way you would be able to keep a tab on the earnings and expenses. Remember that this information is extremely crucial when running a business. Not having a clear picture would compromise your financial standing and can lead to issues in your business.
Spending your Earnings without a Care in the World:
It has often been seen that as soon as the business starts bringing in some returns, the owner goes overboard with his/her spending. Well, spending on essentials is definitely a good idea. However, if you are spending all the money on unnecessary things, it could spell doom. Experts recommend that entrepreneurs should ensure that a part of the business’ monthly earning is set aside. This can come in handy during difficult times.
Making Decisions on an Impulse:
When it comes to decision making in business, impulsiveness is a big no-no. This especially holds true for financial decisions and is one the most terrible habits for business. One wrong decision is all that is needed to start a string of issues that lead to the doom of your business. So, before taking any crucial decisions, analyze the scenario, weigh all the pros and cons and then go for it.
Being too competitive:
Business is all about competition and outdoing your competitors. However, taking this to the point of obsession is surely not a great idea. In the quest to outdo your rivals, you may actually end up losing a lot of money and land in debt. Be cautious with your moves and play it safe.
These bad financial habits can lead the most seasoned businessmen towards disaster. Dumping these practices and embracing safe and good financial habits is what will propel your business towards success. So, if you find yourself guilty of nurturing one or more of the above habits, it is high time that you correct these.