Entrepreneurship: it is trial and error. It is a learning process and making mistakes is part of it. But there are mistakes that can cost you a lot of money, time and stress. Fortunately, many pitfalls can be avoided by recognising them early on. So here you can read about the common mistakes among start-ups and how you can avoid them.
No clear records
Cluttered accounts can lead to hefty hassles with the tax authorities. Not to mention, it leaves you with no idea what's going on in your finances. So how do you prevent this? Immediately make sure you use a reliable accounting system. This will keep track of your income and expenses. A tool such as MoneyMonk can help you keep a grip on your finances.
Unrealistic pricing
Many entrepreneurs just starting out make the mistake of asking too little. And that while others, on the contrary, overcharge and miss out on customers as a result. How to avoid this? Simple: research the market, properly calculate your costs and set a price that is both competitive and profitable.
Not making a tax reservation
Are you not setting aside money for taxes? Then this could cause huge financial problems later. How to avoid this? It sounds simple: keep money aside. Reserve a fixed portion of your turnover for VAT and income tax. That way, you won't face any surprises on your tax return.
No contracts or written agreements
Trust is good, of course, but without a clear agreement, you are at financial risk in case of conflicts or payment problems. How to avoid this? Put your agreements in writing, for example in a contract or quotation. That way, you and your customer know exactly where they stand.
Wanting to do too much yourself
Many entrepreneurs want to arrange everything themselves, with the aim of saving costs. This seems very smart, but it can actually lead to inefficiency and headaches. How to avoid this? As an entrepreneur, you should focus on what you are good at. Outsource things like accounting or marketing to specialists. This saves time and ensures a more professional approach.
