I really should not have done that!1. CHECK YOUR INSURANCE POLICY! If you are a home based business PLEASE check your insurance policy..you may not be covered for your home office or if your vheicles, equipment, tools and etc are stored on the property. One client of mine had a fire in her office and had over $35k worth of damage and the insurance would not cover it. Yes it may cost you a few extra bucks...compared to a loss of thousands of dollars...minor costs.
2. NO PLAN TO PAY YOURSELF! Save money, I won't take a paycheck I will help the business...I can manage without it. Right? WRONG!! You MUST have a reasonable salary for you in your overhead (fixed costs) to have an accurate idea of what it costs to be in business and set the right price for your product or service. Think..what you would have to pay someone to do your job. Most often a great deal more than you now make.
3. BORROWING MONEY from FAMILY. This is "touchy". Your Dad believes in you, your brother has some cash to throw in to your business...Mom has money to invest...what do you do? You have written agreements on the money invested or loaned to your business, how you will pay it back, interest, time period and etc. And most of all you clarify the role they will have in your business. Sometimes when family lends you money they automatically think they can tell you what to do. If you do not want your sister in your business...you have to clear that up front.
4. Using Credit Cards to Finance your Business. Your impatient, you want that computer now, that jigsaw, that power point, that truck and you do not want to have to wait. So what the hay...I will just put it on my credit card and pay it off within a few months. That kind of thinking can quickly get you into trouble. Banks do not like and will not re-fiance credit card debt. The interest is often exorbitant and miss one payment and you are quickly into a situation that can spiral out of control.
5. Hiring Family members. This can be good for the business IF your brother is the person you would hire anyway...if NOT..then don't. Taking in friends and family without them being an asset to the business is a STUPID and a DANGEROUS MISTAKE.
Want to avoid the above and other "stupid" mistakes...put your ego aside..give us a call at 412-440-6969. Don't worry we have done "alot of stupid things"...and we are here to help you grow.
412-440-6969 ask for JoAnn aka "Empressof Biz"
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