Entrepreneurs are often big picture people. That works great when it comes to creating a vision for a company and having the perseverance to see it through.
But when it comes to managing the details, things get lost in the shuffle.
Those little mistakes don’t mean much on their own, but when you add them together, the cost can be substantial. The good news is, since they’re simple mistakes, they’re fixable mistakes.
You just need to identify them first.
Inadequate cash flow planning
Cash flow shortages can happen in the good times and the bad. Your business grows, you expand, and you over extend your reach, leaving you without your financial cushion. Or you fall into financial distress, choking your money supply.
Always be mindful of your cashflow.
It’s best to keep a rolling thirteen-week plan in place so you can react to shortages and change in revenue. If you forecast enough in advance, this plan can be done through your current vendors.
Looking for the easy loan
The words “easy” and “loan” should never be put together. Yet the advertisements are everywhere. They make it seem so simple. A quick application. Pre-approval. Instant money.
Unfortunately, it seems the easier it is to get into a loan, the harder it is to get out of it.
The best alternative would be to avoid taking on any debt as much as possible. But should you need extra money, look for reputable lenders. They’ll have more requirements up front, but it’ll be for the best.
Moving the wrong person to management
Too many businesses have this problem of promoting their best workers to managers. While it makes sense on paper, it can result in the loss of a great technician and the acquisition of a bad manager.
Just because someone is great at their role doesn’t mean they’ll be equally great at managing others in that role.
It’s a difficult area to balance, as you want the employees who do the best job and have been around the longest to have the most seniority. But some people are simply better suited for management than others. Even if those people are outsiders.
If you do decide to move someone up to management, make sure they receive the proper training. Observe them. Help them get better. Weak management can be a serious Achilles’ heel for any business.
We Can Keep an Eye Out for Your Mistakes
The best way to catch flaws is with a fresh set of eyes. With Integrated Consulting, you can bring a new perspective to the condition of your company, allowing you to identify and fix minor issues before they become serious problems.
Whether it’s financial consulting or full CFO services, we’re here for you.