10 Common Mistakes Small Businesses Make

I read an interesting post by Jean-Pierre Ruiz that I want to share with you. Did you know that 33 percent of new small businesses fail within the first two years? Knowing the 10 common problems small business owners face can increase your odds for success.

1. Not Enough Cash. Most businesses fail because they lack enough cash at first and, as a result, take on excessive debt.  Before you set off on your adventure, make sure that you have sufficient cash to operate for the next 12 months, using your worst case scenario. Then, pay careful and daily attention to your finances; carefully record cash inflow and outflow.  Make sure you are familiar with accounting principles.  No need to become a CPA or even take an accounting class.  Widely available and very affordable software packages, such as Quicken, make it easy to be your own bookkeeper.  Of course, if you can afford it, the services of an accountant who has extensive small business expertise is the still best solution.

Read the entire article here.