Accountants know a lot about what’s under the hood of your business…the good, the bad, and the ugly! So we asked Jay Faustin (founder and CEO of Qupid Tax & Accounting) to share with us the most common pitfalls he sees among small business owners.
Here are the top 5 pitfalls he identified:
- Small business owners who don’t trust anyone else to help them. They think they have to do everything themselves (if it’s going to be right), so they burn themselves out doing things they’re not even qualified to do. The experience is lonely and exhausting.
- They don’t know their numbers. Some entrepreneurs are unable to tell you how profitable they are or know which parts of their business are worth their efforts and which aren’t. They can’t accurately predict cash flow or determine how long they’d be able to survive a sales rut.
- They price their goods and services based on their competition. While it’s good to know the competitive landscape, many small business owners are unable to price their services to accurately account for all costs and unwittingly lose money on deals as a result. Further, they don’t know how to value their time or plan for the impact of taxes on their bottom line.
- They procrastinate. Often small business owners are scared to make mistakes and their ensuing lack of action stalls the business. Many experts talk about “fail fast, fail forward,” but you can’t do that while you’re trying to re-work the perfect plan. There is no perfect plan! The only plan that matters is the one you put into action!
- They ask the wrong people for advice. Entrepreneurs often seek business advice from trusted friends rather than qualified professionals. A one-hour professional consultation could have saved the following client thousands of dollars in taxes. And it’s an example I’ve heard hundreds of times…!
“Hi Jay, can you help me file taxes for my S-Corp?”
“Sure, but I’m curious, why did you choose an S-Corp?”
“I asked my friend who owns a business, and she said that’s what she did.”
At Brio Business Academy, we help you avoid these frustrating pitfalls by giving you what you need to know in 10 minute bite-size pieces. View our courses!