Common Mistakes for New EntrepreneursUzorak

Common Mistakes for New Entrepreneurs: Part II

A new entrepreneur I recently coached reminded me of several common mistakes that new business owners can sometimes make. The first is failing to realize the impact of taxes on a small business. The second mistake I frequently see is inadequate bookkeeping.

For many business owners, bookkeeping and administration is a bother. New business owners often intermingle personal and business monies in the same checking account. Some rarely keep track of their income and expenses, and often they don’t want to spend money on a bookkeeper.

Inadequate record keeping is a recipe for disaster! Without adequate records, one never really knows if they are making money, how much they owe for taxes, or when trouble might surface. 

Proverbs 27:23 teaches, "Be sure you know the condition of your flocks, give careful attention to your herds."

Paying a knowledgeable bookkeeper is necessary and well worth the investment.

Questions for Reflection:   

• Why do you think some new entrepreneurs don’t want to invest in a bookkeeper?   
• What do you need to do to “give careful attention to your herds,” and why might some new entrepreneurs intentionally or unintentionally turn a blind eye?   
• Are there other professionals in whom new entrepreneurs could invest that would make a difference to their success–a marketing specialist, for example?