Cash flow is the vital life force for any new business or start up. Industry specialists and financial advisors say that too many new businesses nowadays run out of money before they’ve even gotten started. Most of the time, these are simple, rooky mistakes that could have been prevented if the business owner were more prescient about the financial fragility of their new company. These missteps run the gamut, from being too overly ambitious, having too expensive of taste and not forgoing certain expenses in order to hold on to capital for a rainy day or a fiscal cliff. Well, that rainy day or fiscal cliff can come sooner than many small business owners think if they are not careful. Here are 5 money mistakes to avoid when starting a new business.
Buying expensive office furniture. Many new business owners feel the need to get the shiniest, newest and most expensive office equipment. Tables, chairs, computers and more, bought new, can cost a fortune if you are trying to fill a whole office space. Just because you are a brand new business doesn’t mean you need the top of the line office accessories. You are fresh, young business and clients will understand, or perhaps even respect, that you care more about the bottom line opposed to designer office furniture. The best thing you can do is to buy used, at auction, or at liquidation sales. You can also check out different office furniture suppliers to find the best deals.