As a freelancer or small business owner who just started out, you are bound to make mistakes. The article being referenced details 13 mistakes made by the author when she started her small business. First on the list is not paying state or federal taxes quarterly. She states that if one waits until the end of the year, penalties could be incurred as the revenue authorities would have to estimate your earnings. Included in the list of mistakes is also overestimating projections. She advises business owners to be realistic with projections. Also, another mistake is making financial decisions without understanding the cash flow implications. If you try to avoid any of these mistakes, it makes the business easier to handle.
- It’s imperative to create and then follow a budget every day because spending without tracking can be costly.
- You should check with your bank to find a better account for you if their fees add up to more than you can spend.
- A smart move for your business is to utilize contractors and freelancers during your busiest times.
“One big mistake I see often is small business owners overestimating their projections. I’m all about being hopeful and reaching for the stars, but when it comes to financial projections, being realistic will set you up for the most success.”