5 Financial Mistakes Your Business Can Avoid

Business owners are constantly looking for new funding, better financial resources, and improved management. Most just want to scale and expand their business. These key financial mistakes are what hold many businesses back from achieving this goal.

#1: Not separating business and personal funds

It’s important to have separate accounts for your business and personal finances. To achieve this, be sure you have money earned by the business coming into a separate account than money used for everyday personal expenses. This gives you a clear picture of where you are financially at any time.

#2: Impulse buying

It is a problem that individuals face but it is also a key concern for many businesses. Financial mistakes here include over investing, not taking the time to learn about all of the options, and simply overspending.

#3: Paying for late fees

If you fail to make a payment on time, you are charged a fee. This could be a fee from a lender, your banker, or even a vendor. However, these fees add up, and eventually they will take a hit at your bottom line. Thus, is very important to stay on top of any debt and avoid throwing away hard earned money.

Want to Know How We Come Up With a Loan Offer? Let Us Show You!

#4: Funding non-income earning initiatives

There are many ways to spend money on your business. Sometimes, you have to spend on tasks, features, and services that do not have a direct impact on growing the business’s revenue. However, your goal should be to minimize this. Before making any financial decisions or investments, understand what the direct impact will be on your revenue.

#5: Not shopping around

Like any other resource your business invests in, you need to shop around for vendors. In nearly all industries, there are multiple vendors that can offer you a similar service. This type of competition helps drive prices lower. Look out for unique features that set one vendors apart from the next. And take advantage of that.

The Bottom Line

Avoiding these financial mistakes can help business owners to free up “wasted” money, or money that’s not producing revenue. Take a closer look at the investments you make. Where does every dollar go? Could you better invest that to help your business to grow?

Contact CMS Funding today for a vendor neutral approach to business financing!