You can do better. You deserve better.
Many entrepreneurs dream of starting their own business for a very long time. They plan and save their money for years and finally make it happen. Then, all too quickly, their small business goes under, and they are left wondering where it all went wrong.
Here are the most common mistakes that will quickly put you out of business and how to avoid each of them.
1. Not managing your cash.Every company goes out of business for exactly the same reason: They run out of cash. Most entrepreneurs mistakenly think that building a business is about growing sales or profit. It’s really about monitoring and ultimately increasing the cash retained by your company.
How to avoid this mistake: Learn to read your cash flow statement monthly and find out the sources and uses of cash in your business. At a minimum, review a reconciled bank statement to see if your company has more or less cash at the end of each month.
Here are the 4 other killers.
H/T: American Express Open Forum