Financial Mistakes

[puloweh555]

Copying someone else's business doesn't determine success because under certain circumstances, we will face problems, and building a successful business is not easy. It's not just about money, but also about how to manage it to grow. Most people misunderstand the situation and think that copying someone else's business will make them successful. However, they do not understand that business is not run just because of having money but rather how someone survives with a lot of competition.

As is currently the case, copying someone else's business is quite easy, but what about our chances of success if we don't have a good understanding of the business? Financial management and risk management are two basic things that may affect business performance, and vice versa, marketing plays an important role in the success of the business we run. Without these skills, I am sure the business we run will not grow.

That's right. Copying someone else's business won't make you successful because one thing is certain you can't copy their way of running their business, and vice versa. Even if you want to imitate you must have innovation or something different from other people's businesses.

Essentially what makes you successful in business is having business knowledge understanding risks and being consistent until your goals are achieved. Furthermore you must also have the view that not all of your business plans need to be known by others because in business, silence is often more powerful than explaining. So start your business with focus keep your strategy tightly under wraps and let time determine whether your business will succeed. Success in business isn't about appearing busy, but about being consistent, intelligent, and unaffected by the opinions of others.

[EarnOnVictor]

1. Inadequate knowledge of the business
2. Poor management skills.
3. Lack of financial control .
4. Impatience.
5. Failure to recognise targets market areas.

Well, the list is very long if I start mentioning them. But at the same time, some of these things can only be known in full only if the person has started the business. Learning doesn't end in the theoretical part, you gain more, and the most important knowledge/experience are gained in practically. This is why they say business goes with risk, and people tend to get better in it.

The only set of people I would blame are those who are static in experience, who do not attract more knowledge. What they know from day 1 is what they still know after some years. This is not only dangerous for the business, but the smart employees could take advantage of that as well. It happens every day.

[Agbe]

Op what you said is correct and let me add some to the list. Targeted audience. As a business starter, she or he has to know who is the targeted audience of the business and when that has been done, the next is the marketing strategy to attract the audience to the business. You can print flyers or banners and the most effective way is the reduction of prices of the goods or services to attract the audience to the business.

[Cgrexp]

It is easy to think that anyone can successfully establish a business just by getting money in hand, but behind success lies proper management, knowledge, skills and mental preparation. Therefore, no one can think that capital or money is the only driving force in business success. Lack of sufficient knowledge and poor management are the main reasons for wrong decisions. In addition, proper management of that money or capital, such as cash flow, emergency fund and realistic budget planning. When there are mistakes in financial management, those mistakes accumulate and become a cause of great losses. Therefore, there is no room for ignoring knowledge, patience and planning in business.

[Yeesha]

Most of the individual that are going into business most times venture into the business just because the have the capital to set up the business, but forgetting that Capital is just one aspect of the business and for some reason we need to know other aspects that make up for a running business, the lack of this knowledge is what have been the bedrock of the failure of must individual start up businesses.

Exactly, you are extremely right. Nowadays some people think that the only thing that matters in starting or setting up a business is the capital, which is extremely wrong. Before you start a business its really important for you to know your abilities and capabilities to prevent yourself from making the wrong decisions, and you can only achieve that if you are knowledgeable about the basics and concepts of business. Acquiring knowledge is actually very important and essential for you to understand and also know the best way to go about your business, it also requires dedication, loyalty, commitment, discipline, patient, consistency, Resilience, and grabbing better opportunities.

[Cheema02]

Many businesses failure today mostly beginners in business full of capital is anchor on op item number. Knowledge and courage to stand when a business is not moving as plan has been one major problem with people who lack required knowledge in such area of investment. Every business or investment need a specific knowledge, which serve as guide to strive investor when ever it challenges arises. All business is garbage in and garbage out you can't give what you don't have, starting A business or investment without good knowledge no matter the capital such investment must surely collapsed, knowledge is a touch light or tool that eliminate failure in business where investor lack such, such investor can't succeed.

Your are right, the strategies of beginners in business. Many individuals fails in business because they over reliance on Capital other than knowledge about ther business and that's the biggest mistake they have ever done. When an individual starts business without getting proper knowledge so there is much more chances of his failure and if he reflects his business in struggle then the only thing that's work is the best decision you make on knowledge based according to the condition. Every Business man should need specific knowledge about his business which act like guidness in difficult situations and without it he probably makes wrong decisions which leads to him on the wrong way. So the learning point is that every business not only depends on investment but it also needs accurate knowledge of directions.

[icebar]

Starting up a business isn't something anyone should do without planning, one problem most people put themselves in when they set up a business in a particular location is the lack of survey before execution...if you don't really understand your environment and know what is of high demand in that location you might invest in the wrong thing..it is not just about starting up a business, also have a strategy

Strategy is very important in any business. Many people have money, many people invest in business, but not everyone can be successful. Those who have strategy, knowledge, information and experience are the ones who are actually successful. I have a friend who started a business with little capital and later he built a very large business from there. He has now become very rich in just 5 to 7 years. Before the business he was starting, he used to work in that related business company. There he became experienced, learned strategy, started his own business and became successful.

[AmaGold70]

Sometimes in view to setup a business because of the availability of funds we tend to hurry into it without fully gaining proper knowledge of some certain thing's and factors. We feel money is the sole driver of a business neglecting basic knowledge that we would need to keep the business running after it is been set up. These little but important things lead to the failure of the busines which I tag a financial mistake.  Below are a few financial mistakes business starters make and you can as well add yours for the purpose of knowledge for us to learn and take note of.
1. Inadequate knowledge of the business
2. Poor management skills.
3. Lack of financial control .
4. Impatience.
5. Failure to recognise targets market areas.
Etc

I've once had a failed business before and now in my new business I know better and I changed the approach I used in the previous one and I'm doing better now, at the start of your business never give out your Goods to family and friends free and sometimes on discounts just because you know them your business will suffer loss if you keep doing that. Always differentiate between business and pleasure and family relationship, businesses takes time to grow or develop but I lacked patience I wanted to see positive results at the first month I started my business but it doesn't work that way, capital isn't the only thing needed to start a business you also need to have the skills of entertaining your customers in a way that they will always want to come back, always be ready to put up a smiley face now matter what you have been through at home before coming out because you don't expect a customer to come back after you have spoken harshly to them because of your personal reasons, never mix your business life and your personal life together because if you bring your personal life to your business it will affect it and if you bring your business life home it will affect it too.

[junder]

When starting a business, having capital is not enough; you also need to have knowledge about the business you want to build, because most other investors are just copycats in what they do, but they have no idea how to manage it properly they think that if they copy it, it will be fine, but it doesn’t work that way.

We really need to have a goal, a plan, and we should also understand what is called financial management, risk management, be good in marketing as well, and lastly, we must be very familiar with the kind of business we want to build in this industry.

In business, financial problems are often inevitable, and that's normal. Sometimes, people are overly enthusiastic about starting a business, believing they have enough money but lack the necessary knowledge to start. However, when problems arise, they lack the understanding to resolve them. This can lead to obstacles in their business, but they should be able to find a solution by learning on their own, as they've already started, unless giving up is an easy step. Sometimes, the problem lies in finances, where they lack capital or other factors. This also needs to be addressed. Money mistakes and problems are common in life, whether in business or in everyday life.

[tottong]

Strategy is very important in any business. Many people have money, many people invest in business, but not everyone can be successful. Those who have strategy, knowledge, information and experience are the ones who are actually successful. I have a friend who started a business with little capital and later he built a very large business from there. He has now become very rich in just 5 to 7 years. Before the business he was starting, he used to work in that related business company. There he became experienced, learned strategy, started his own business and became successful.

Besides strategy, perhaps having much clearer marketing goals and targets is also crucial in business. Sometimes, business owners make the mistake of not having the skills to market effectively, such as engaging buyers, and they tend not to return to our store.
We must admit that building a business with little capital is quite difficult nowadays because there are many competitors who can hinder its growth, although sometimes one or two are successful.
I see some people who start businesses with little capital always complaining that they don't have the capital to spend large amounts on goods, so they can't promote price cuts or discounts.

Ultimately, they couldn't survive because competitors were buying goods in large quantities and they were constantly offering discount promotions to attract customers.
Sometimes, not everyone can achieve success in business, but everyone has an equal opportunity to achieve success if they do it right.

[aysha9853]

It is easy to think that anyone can successfully establish a business just by getting money in hand, but behind success lies proper management, knowledge, skills and mental preparation. Therefore, no one can think that capital or money is the only driving force in business success. Lack of sufficient knowledge and poor management are the main reasons for wrong decisions. In addition, proper management of that money or capital, such as cash flow, emergency fund and realistic budget planning. When there are mistakes in financial management, those mistakes accumulate and become a cause of great losses. Therefore, there is no room for ignoring knowledge, patience and planning in business.

It’s true, capital by itself is not the solution, money only amplifies the kind of management you already have, if there is no control or planning it disappears fast, a lot of people underestimate basic things like cash flow or budgeting and that is where the problems start, knowledge and patience are not optional in a business, they are what keep small mistakes from turning into big losses.

[JoyceBTC]

I want to elaborate more on one of the financial mistakes you mentioned, which is impatience. Patience is very important when starting up a business because if you don’t have patience, your business cannot grow or your business tend to crumble. Most people start businesses and believe the business will just boom all of a sudden, they don’t know that every business has its own time it takes to grow. Some business might take six months and some might take less than, so before starting a business you need to know how the markets works, and not be in a rush to close down the business because it is not moving. You need patience to  grow a business so don’t feel bad when you start the business and things or the business is not moving so well at first because business takes time, you need to acquire customers, you need to create brand awareness, and all of that so it’s really takes time. So impatience makes business crumble.

[gibrab16]

Lack of financial control is underrated. Some businesses make good sales but still die because expenses aren’t tracked. Also, mixing personal money with business money is another silent killer. If you can’t separate the two, the business will always feel confusing and stressful.