We’ve all heard the mantra – cashflow is the lifeblood of any small business or startup. However, many rookie entrepreneurs makebig mistakes on this front. This has been noticed by Inc who have written about the 5 biggest money mistakes of rookie entrepreneurs.
In a nutshell, these mistakes are most commonly:
- Underestimating the amount of cash needed to creak into break even – Often, the actual amount of cash needed to get to break even is significantly larger than what’s stated on the business plan.
- Aiming too high – it’s important for entrepreneurs to identify what projects are critical for success, and those that can wait.
- Hire employees only when you can justify their contribution.
- Buying everything new.
- Not having a comprehensive backup plan.