Over expenses is very common mistake made by every general person, don’t get so dispersed with this. It is a mistake which is mostly made by new entrepreneur but if you made it repeatedly you are soon going to fail in the market. You must manage your finance there should be a limit on it. It is observed in the market that one of the big factors of the failure of the startups is allocation of the funds or we say finance utilization which results in the shortage of the cash. As it is a common thing which is known by everyone that Cash is the blood of one business. There are some Points or you say common mistakes that should be avoided.
- Trusting on your assumption
- Adding extra to fixed costs
- Thinking for the Luck
- Trusting other for financial control
- Unclear Goals to be achieved
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Trusting your assumption
Trusting yourself is a huge part of getting the entrepreneur successful as it is the self confidence which gives energy to the person for doing the work in the organization and taking good decision in the market. If your confidence gets converted in over confidence you are going to suffer from the failure in the market as now everyone is open to the advance technology in the market and when your decision gets failed your over confidence gets low or it gets very tough to gain the self confidence back and it all starts with the overconfidence. There is very minor line between confidence and self confidence but that has to be considered very seriously because it can cause major effect on the business in the market and at the starting stages of the start up when the cash flow is little tight every wrong decision causes you a great harm in continuous working of the startup. You choose any option but choose wisely that you doesn’t get to the third option of short in cash.
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Adding extra to fixed costs
Everyone know that keeping the cost low is the easiest and simplest way to make the startup work in the market which include removing the extra and non necessary things and keeping the return providing things.
One should divide all things according to the priorities of that product or we say they should be arranged in such a way that necessary thing should come in the first position and not necessary things should be at last in the list which helps in the cost reduction of the organization which should be done on monthly basis.
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Thinking for the luck
Sometimes it is perfect to be wait for luck sometimes as something are on luck but always believing on the luck will not be good it will be resulting in the end of the startup or the organization one out of hundred time it will work and rest time it may fail, but unfortunately in India all the blames go the luck and destiny which is not right at all. It is your positive attitude that makes things going in the right track with this it is on the reaction time taken on any event that whether it is quick or late for that. One should review the situation with patience and taking the hard look at the numbers with keeping a eye on the things for a while to see how they think before taking the decisions is a good idea.
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Trusting others for the financial control
It is one of the most important things you cannot rely on someone completely in any condition especially when you are short on the cash flow in the organization making it one of the most concerning thing in the startup. You should keep an eye on it, Not at all transaction but you should know the main transaction taking place in the organization, even if you are able to classified you must go through the financial reports of the business properly with your proper concentration in it and checking all the things if only 1% doubt is not cleared or any doubtful expense or profit is seen and you should understand one and everything in it. If the finance is not your do it after the month or after a quarter but you should do it on the proper manner and must be in full concentration. Don’t believe the finance man of the organization and then killing him brutally for the same reason in the organization and resulting in the closing the startup due to the same over believing and not doing the check. Almost 40% of startup get cased due to improper maintaining of the accounts books.
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Unclear Goals to be achieved
Not a big point but a valid point in the success of the organization every startup has a goal but the twist comes in selection. One should select a goal but in the limits in starting don’t let your confidence down if your startup not get a superb response as it take too much hard work in reaching a mile stone of achieving your first objective you have to keep patients in you making the way in which work may go to the development and review your object that is it realistic or it need some modification and ask some question like are you going towards it or not, what more can be done to achieve it, where we are getting lagged in achieving it.
These are some of the basic points but the thing which make these point is start the work and never feel lost keep positive nature and show your hard work a direction in which you can get successful and use your whole energy in it without thinking of what people call your hard work will pay off.
This article has been written by Shruti Kakkar, Content Writer, LegalRaasta- an online platform for GST Registration, GST Return Filing, GST Software.