At 365Insurance, there is a reason we do what we do. We want small and online businesses in Australia to survive without falling in common pitfalls. We want them to operate with minimum risks and under the cloak of protection.
Unfortunately, small business failure is often linked to mistakes that could have easily been avoided. While there are errors that aren’t as dangerous, mistakes in financial matters can be fatal.
Here are four of the most fatal financial businesses every small business owner should avoid.
1. Being a Little Lazy with the Payments
You might think that delaying your payments will help you hold more cash, but for how long can one delay the inevitable. It is better to pay ten dollars now rather than 15 later. Same goes for account receivables, giving too big of a window to your customers can hurt your cash flow and might put your finances in peril. Make sure all payments, yours and your customers’, are paid within a period of 14 days.
2. Not Drawing a Clear Line
No matter how small your business is or how limited your staff, your personal account and business account should be separate. Drawing that line from the very start will not only save you from financial turmoils, it will also help you maintain a healthy work–life balance. No matter how bad things may seem for the business, never put your personal assets on the line.
3. Investing In the Wrong Areas
It is normal for business owners to go overboard with the spending. It is true: you need to spend some to earn some. But it doesn’t mean you should shell out money on things that won’t pay back. Remember, there are areas that don’t need much of your attention in the earlier stages, especially if they are not directly generating any revenue for you,
4. Choosing the Wrong Insurance
As a trusted provider of small business insurance Victoria, this is a mistake we cannot miss in this list. There is a reason: we offer more than one form of business insurance solutions. Not all businesses need the same coverage.