Financial Mistakes

[Youngrebel]

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

[Odogwu-Blockchain]

Preparation of business plan before budget arrival: Business plan at hand should be well documented, written, organized, every cost of materials, marketing strategy at a certain period of time, workers payout, advisors meetup, area of specialization and many many more should be well written and presented in a decent manner before the arrival of capital.

Businesses usually fail when all these are not set first, because everything to be done after the arrival of the capital usually comes in a haste which most time causes a serious collapse in businesses. Imo

[Odusko]

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.

[AmoreJaz]

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.

Capital is only one aspect, skills and knowledge are very important as well. Because you need to know about what you are getting involved with. Aside from that, you also have the passion to manage your business because it will give you so much anxiety in life if you have no passion at all.
So for me, non-negotiables before putting up a business are-
> capital
> knowledge
> passion
> good chance of profitability
> you have your perseverance and integrity

[Alone055]

No proper preparation is also one of the biggest reasons why businesses fail to deliver. When someone wants to start a business, but because they are too eager to do it and start making money, they don't make proper preparations for the business to set up and get started properly, they feel they will do the rest once the business starts running, but that is a mistake, because you should only start a business when you realize that you have done all the preparations, and once the business starts, there won't be any problems or disruptions.

You have already mentioned this, but I just want to add that when a person doesn't have enough knowledge about a business they are starting, the business will mostly not do very well, because all the things eventually revolve around this thing. If you have knowledge about it, you would know the budget that would be required for each thing, you will know how you can find and attract more customers, and where you should open the business in the first place.

[palle11]

3. Lack of financial control .

Somehow this is suppose to relate to what I have to contribute. Start up business is suppose to have set aside funds to support the company in hard times as it is starting up. It suppose to have maintenance funds apart, it suppose to have money for miscellaneous aside, it is suppose to have money for taking care of workers even when it is yet to begin production or start to make profit because it is workers that will be behind and try to kick start the production , without paying them then the production won't be visible.

[Fortify]

Everyone has to figure out their own way in business and anyone who has ever ran a business will admit to making dozens, if not hundreds, of mistakes as they learn. You will not learn everything from reading, or figure out every pitfall, or understand every marketing strategy that is destined to fail unless you actually take action. Acting like every one who has ever created a business has been infallible and made zero mistakes is incorrect. You will waste some money along the way, but as long as you refine your skills and optimise them for next time, that knowledge you accrue starts to become priceless. Some people will have natural talents in the areas you mention, but it is usually stuff that they have learned or self taught themselves along the way.

[justinlamode]

The list of things that constitute financial mistake in business are just inexhaustive and learning from them makes us do great in businessmen. In all the things listed, I think improper planning or poor planning is the biggest problem that most businesses face because planning involves a lot of deep thinking and study of the business dynamics, the market, competition and even the risk involved to be able to mitigate them. It goes with the saying that "he who fail to plan, plan to fail".

[OgNasty]

3. Lack of financial control .

This is the biggest one I've seen in my lifetime.  I can't tell you how many people I've seen inherit large sums of money only to go buy a new truck, boat, motorcycle, vacation home, etc...  It is actually crazy how many different examples I could give.  If there's one thing that can destroy you financially over time, it is using windfalls of money to get yourself into more debt instead of less.

[Furball808]

I would also like to add that I see often how people build business partners without really knowing the person all too well. And most of the time that doesn’t end well. I know that some people trust too much their business partners that they don’t write anything in paper or contract which allows the other person to take advantage of the business without repercussions.

[Youngrebel]

Everyone has to figure out their own way in business and anyone who has ever ran a business will admit to making dozens, if not hundreds, of mistakes as they learn. You will not learn everything from reading, or figure out every pitfall, or understand every marketing strategy that is destined to fail unless you actually take action. Acting like every one who has ever created a business has been infallible and made zero mistakes is incorrect. You will waste some money along the way, but as long as you refine your skills and optimise them for next time, that knowledge you accrue starts to become priceless. Some people will have natural talents in the areas you mention, but it is usually stuff that they have learned or self taught themselves along the way.

Your point is valid  on everyone finding out what works for them in business or finding their way in business in the course of the business but I still think anyone who wants to start a business should atleast have a certain level of knowledge or experience about the business before embarking on it. Somepeople will learn from their experiences in the course of business while others donot survive it but they end up losing money that is meant for the business or even end up folding up as a business.

[Vaculin]

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.

Capital is only one aspect, skills and knowledge are very important as well. Because you need to know about what you are getting involved with. Aside from that, you also have the passion to manage your business because it will give you so much anxiety in life if you have no passion at all.

While capital and passion are important, we should also conduct a market research so we can come up with a powerful business idea, that's the most important there. We need to have a solid business plan on how our business works, and implement marketing strategies so that we can assure that we are working on a quality business to meet the satisfaction of all the customers.

Having adequate knowledge on the business we are going to establish is the topmost priority, at least our business will stand firm in such a competitive market.

[alastantiger]

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

You have indeed highlighted some of the most common pitfalls and they are exactly what hold new businesses back. People think capital is the main ingredient but in reality, knowledge and structure are what determine whether the business survives after the money is spent. many startups collapse not because the idea was bad but because foundation wasnt strong.

[Yamifoud]

3. Lack of financial control .

This is the biggest one I've seen in my lifetime.  I can't tell you how many people I've seen inherit large sums of money only to go buy a new truck, boat, motorcycle, vacation home, etc...  It is actually crazy how many different examples I could give.  If there's one thing that can destroy you financially over time, it is using windfalls of money to get yourself into more debt instead of less.

That's the human nature, spending like a one day millionaire and struggle the rest of the days. Most particularly for those poor individuals who have not experienced some comfort in life, and end up buying their wants instead of prioritizing their needs.

If a person like this starts a business, failure becomes more visible than success. Good financial management and control are important, so you need to be careful on your expenses to avoid losses and future regrets.

[Odusko]

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.

Capital is only one aspect, skills and knowledge are very important as well. Because you need to know about what you are getting involved with. Aside from that, you also have the passion to manage your business because it will give you so much anxiety in life if you have no passion at all.

While capital and passion are important, we should also conduct a market research so we can come up with a powerful business idea, that's the most important there. We need to have a solid business plan on how our business works, and implement marketing strategies so that we can assure that we are working on a quality business to meet the satisfaction of all the customers.

Having adequate knowledge on the business we are going to establish is the topmost priority, at least our business will stand firm in such a competitive market.

. market analysis and basic under with long period of market experience is what put a start up at a level playing ground that can at least propel him to profiting and to have a long term running business in the end, this is not new and there is no two ways to that if you must succeed in the business then having experience in the business is a key capital that you need to get along side the Money to establish the business.

[Furious 7]

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

My own observations of the people around me show that many people start businesses but lack knowledge. And, as you said, it's true. Perhaps because they have money, they rush into starting a business without proper preparation, whether in terms of business knowledge or business management. Because of this, many fail, and many businesses don't last long.

People who have experienced something like this should be able to learn from what happened and use it as a learning tool to avoid repeating it when starting a business again. This is certainly useful for preventing similar risks. So, when starting a business, it's crucial to have sufficient knowledge to run it smoothly.

[Churchillvv]

I just learnt that you can have all the disciplines and avoid everything you listed yet still remain poor, live is beyond all that principles and list of how to go about financial life, if you will be successful you will and regardless of your wavy mistakes you will still remain very solid in your life endeavors, there are king makers and once you have a chance to get the doors to success open you will learn all the rules that comes with the money most times along the line but however it’s very paramount to avoid anything that is not financially good or advisable.

[aioc]

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.

If we rely only on money and ignore knowledge and skills in running a business, it's like driving a car with no direction; it is the easiest way to lose a business.
Money is essential to running a business, but it's only part of the package; knowledge completes it. Why do we go to college or university and take up business courses if we only rely on money?
Even if you have only the knowledge, you can start a profitable business by taking a loan.

[bhadz]

As risk takers, businessmen who are just starting out always need to test the waters. We are unsure if the business we have decided to start will click. I have done businesses as well but not all of them became successful and that's why I always test the waters when I try to do something new and what I think will be good as a seasonal business. And so, this relates to lack of financial control when people that starts out think that it's all about how much capital that they have but no, that's not about it because what you need to have is leads and to drive sales from what you do. Bigger capital is nothing if you don't drive sales from it.

[Oasisman]

5. Failure to recognise targets market areas.

I think this is the most common reason to every business that went bankrupt at least here in our area. Most of them are already equipped with enough knowledge to run the business model they desired, and they are financially ready as well. However, they fail on area they choose to put their business into. Some of them are renting an overpriced commercial spaces because they thought it's the perfect spot for their target market. Well, it's just sad that some of them closed after a few months, some have endured for at least less than 2 yrs trying to build their brand, but it's all very unfortunate.