Entrepreneurs waste a lot of their revenue than they are aware of. Here is a long list of mistakes you might be making unknowingly, letting stacks of money out of the window without even realizing:
- Most business owners don’t monitor their credit score regularly. As a result they end up with errors in their credit score reports which reduce their overall credit score. Even if you always pay your bills on time, but low credit score can cost you a significant amount.
- Expenses aren’t all the same. The only expenses you should avoid are the destructive ones. These expenses include spendings on products and services you don’t use (your gym membership), overdraft charges, credit card charges, penalties on overdue bills, etc. If you spend $10 which in return earns you a $20, you consider this sort of expense to be rather constructive.
- You may even be paying more taxes than you actually are supposed to be. This is because you haven’t bothered consulting your tax preparer or auditor other than the financial months of March and April. So, you don’t exactly have a full-proof tax strategy in place.
- Most people haven’t reviewed their business structure in ages. While you think everything is functioning normally, money is slipping out of your business, right under your nose. Your accountant may not advice you of reviewing your business structure because corporate structure may lie outside his expertise.
- Most small businesses lose out on their profits to poorly structured loans, with high cost of borrowing and high interest rates.
- Most people have multiple personal loans – mortgage, car loans, education loans, etc. What people don’t realize is that they actually combine loans and have them restructured to reduce the interest rates and increase monthly cash flows.
- While you are being smart about paying your loans all at once, you might be overpaying. People think they will get free from the loan; it is advisable to apply a more focused methodology to pay off your loans. You can pay off small loans faster than the other loans. This will help you in increasing your income debt ratio, which will further improve your credit score.
- Most people think they have saved enough for their future, and they can pursue a certain lifestyle or fund a certain luxury. Spending lousily will cost you heavily in the future. It is advisable to separate such expenses, have a separate fund for emergencies and retirement.