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Avoid These Costly Mistakes When Running Your First Start-Up

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Side hustles are like adventures that give you a thrill when your profession no longer sustains you. They are the perfect solutions in the volatile economy where fewer job opportunities are manifesting. To successfully launch your startup you need proper research, business programs training, and resources at the very minimum. It is normal for side hustles to face stumbling blocks along the way, however with calculated risk-taking, proper resource allocation and sound leadership things could begin to take shape in the foreseeable future. According to funnelstak reviewed from most successful entrepreneurs today, these are the deadly mistakes you must never make when managing your startup today. 

Skipping your tax obligations 

Though a senile mistake, skipping your tax obligations is a threat to your business by a large percentage. All countries source their revenues mainly from taxing their citizens and licensed businesses. Failure to pay taxes even for startups attracts diverse adverse outcomes like penalties, liabilities and even being sued. Make yourself familiar with all the tax laws of your country to avoid the penalties that come with skipping the same. These are lessons you can find from purchasing the right business programs for entrepreneurs. 

Poor pricing hence low profits 

Attracting traffic to the business is often the primary objective of most startups in the first few months after their launch. Affordable pricing is among the factors that attract more customers besides customer satisfaction. You should however not confuse fair pricing with low prices as you have to get value for your goods or services. After researching how other businesses in the same niche price their commodities determine your profit margin and set a reasonable price that will not cripple your business. 

Failure to insure your business or cover liability 

This is also a grievous blunder likely to drive your business towards many liabilities and court cases. Multiple risks come with running a startup and that means getting the right coverage to help you with risk management. Find out what the insurance policies in your niche are and get the appropriate cover to protect you from the liabilities that might arise in the event of the realization of certain risks. This is especially urgent if you are a sole proprietor who has to use personal finances to run the business. 

No ideal retirement plan 

No one wants to work forever, especially with the threat of aging and death being a constant reminder of how short life can be. The earlier you make investments the better for you especially since you need multiple income sources. Your startup can contribute to part of your retirement plan as some of the profits are saved in long-term retirement plans like IRA gold. Working without a goal in mind can often lead to running around in circles but no forward movement. Consider taking your time to devise the right savings plan that will not cripple your business. 

Inability to separate personal from business finances 

Businesses run based on making profits for their owners however that should not be their objective. Entrepreneurs should instead focus on the satisfaction of their customers’ needs and proper management of the returns for the business to grow. Business manuals can help you understand basic accounting skills that will come through in your bookkeeping role as a manager. At no point should start using funds from the business account for your personal needs. This creates too many liabilities for the business and ultimately corrupts your accounting. Ensure you separate persona and business accounts and stick to the parameters that come with both.