The 7 Biggest Mistakes That Most People Make In Starting A Business...And How To Avoid Them To Succeed!
by Charles Prosper

1. Asking for Opinions:

You go to an expert on building wooden shelves, and ask him how to build shelves that would be able to hold heavy boxes for your business; this would be GATHERING INFORMATION. To ask this same expert on shelve building whether you SHOULD open a business for which these shelves are intended to be used is ASKING for an OPINION. When you ask for an opinion, you are essentially asking someone else to give you permission to believe in yourself. 

2. Telling People What You're Going To Do:

The sister of asking for opinions is telling people what  you're going to do. Even if they tell you "That's great!  I think that's a GREAT idea for a business," there's still a lurking danger there. Eventually someone is going to DISAGREE with your idea. The minute that you have to defend your idea, you weaken it. Be silent. Do it, and tell no one.

3. Opening A Store Before You Have A Following

Even if your have enough capital to start up, you must be an expert in the MARKETING process of your business.  Keep your day job. Work from home with your business  6 to 9 months by building up a following and clientele, learning how to promote and create more business in a safe,  low-overhead environment then IF you decide to go full force with the commitment of a store, you will succeed. 

4. Not Saving Up Any Start-Up Capital

*Hold a regular job, (full or part-time) in the meantime. *Do as much of your home business after work and on  weekends. *Save at least 30% of your gross earnings for 1 year as  a capital reserve fund *Quit your job, when you are truly ready and on your  terms! 

5. Not Keeping A 6-Months Reserve

Save up at least 6 months of living expenses in the bank in case the worst happens such as the lost of a job or slow periods of business?  You must think like a squirrel! Squirrels save nuts for the winter.  How many nuts do you have saved away for your "winters of low money"?

6. Not Setting Up Good Bookkeeping

What you GROSS is really nothing but FUNNY-MONEY. It is not until you know what you have AFTER expenses that you can truly realize how well you are doing. Setting up good bookkeeping is not only vital to you knowing what your profit and losses are, but it is also absolutely necessary when it comes time for you to do your taxes. Hire a once or twice a month bookkeeper - or, get one of the many home-based business-bookkeeping software programs, and do it yourself.

7. Not Setting Aside a Quarterly Tax Reserves

While on the subject of bookkeeping is the subject of quarterly tax reserves. A good bookkeeper or accountant, preferably a CPA (Certified Public Accountant) can help you to anticipate your end-of-the-year tax debt based on what your business is earning every 3 months. He or she will advise you of how much you should be putting aside every 3 months in a special savings account to prepare you for Uncle Sam on April 15th. Don't be caught by surprised. You only need one tax lien to ruin your day. Be smart; be prepared. Be successful.

Best wishes and prosperity for you and your business.

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