Ten Common Financial Mistakes Businessmen Make

Man holding an empty wallet

Starting or maintaining a business is challenging in an economy that is still struggling. Managing finances in any types of business requires planning and discipline. The following are ten common financial mistakes that are often made.

1. Confusing Saving and Investing
The main difference is money that is saved is money that a business can't afford to lose. Invested money is always subject to a loss. Businessmen too often invest to save and thus have no idea what their long term savings may be.

2. Deferring Taxes
This sounds great, especially when a business is just starting. But many businessmen get behind the eight ball on this. When the business grows it will mean paying taxes on a larger amount. It's usually better to pay taxes up front.

3. Inadequate Insurance
Depending on the type of business and the location, certain types of insurance are legally required. Not having the insurance can mean paying fines. Businesses also need adequate insurance for liabilities such as lawsuits.

4. Lack of Forecasting
Every business must have a detailed plan written out for every aspect of the business. Failure to do so means a businessman is simply guessing about how much he'll sell and what the expenses will be.

5. Poor Accounting
Keeping track of the finances is more than knowing there's currently money in the bank. Proper accounting will show exactly where money is being spent and how it's coming in. This will enable a business to make proactive financial decisions.

6. Planning on Profits the First Year
Most businesses don't make a profit the first year. Having either enough capital or another source of income is essential. The first year of almost any business is bumpy and unforeseen costs often arise.

7. Hiring Unnecessary Employees
Hiring permanent employees means extensive record keeping and withholding a variety of taxes. This can be expensive and time consuming. For some businesses it may be better to go through a temp agency for human resource needs.

8. Not Collecting Bills
Not all clients pay for services or goods in a timely manner. Knowing how to work with clients, such as re-billing or making personal contact, to collect payments is not always an easy task.

9. Not Enough Capital
Having enough money to run any business is always a challenge. People tend to be overly optimistic when raising capital. Few business ventures run smoothly without any unexpected costs. Whatever amount is thought necessary to run the business, double it.

10. Lack of Personal Retirement Funds
Those in business sometimes neglect to put aside money for later years. It's better to plan to put away smaller amounts of money monthly or quarterly than waiting until the end of the year.

By consciously working to avoid these mistakes a businessman will save himself a lot of time and resources. Almost all of these mistakes can be avoided by writing and sticking to a detailed business plan.

Stanley Stone is the president of stanleypstone.com. He is a Certified Independent Public Finance Advisor (CIPFA) and an associate member of the National Association of Bond Lawyers. Stanley loves the theater and attends many plays, operas and ballets each year in New York City.

Growth Coach Ingar Grev Interviews General Motors CEO to Share Leadership Knowledge with Other Business Owners, Managers

Washington D.C. (PRWEB) June 20, 2013

Washington D.C. Growth Coach franchise owner Ingar Grev knows the world holds few great leaders people who know how to turn around a company, save thousands of jobs and push a staff to the next level while creating a team focused on the future who can communicate with each other.

Thats why, when Grev found himself sitting next General Motors CEO Daniel Akerson at a Naval Academy awards dinner and the two hit it off over football and a discussion on leadership and business strategy, Grev saw an opportunity.

At the end of the evening, I asked the Navy Athletic Director Chet Gladchuk to snap our picture and, before we said our good-byes, I said, Dan, I’m a volunteer blogger for the Washington Business Journal, a business coach, and I write on leadership and strategy topics. May I please interview you? He said sure and he gave me 90 minutes over the phone more than he gave any journalist, Grev said.

The plethora of knowledge shared during that 90-minute interview was turned into a four- day article series recently published in the Washington Business Journal. The articles received some of the most reads for the website during that second week of June.

Grev said writing articles and blogs for the Journal are part of his mission to help business leaders improve and to also help promote his Growth Coach business to so many readers.

I started my Growth Coach business in 2007 after a long journey of being frustrated with business leadership and strategic execution in American business, he said. The Growth Coachs no-nonsense approach is remarkably effective at solving that problem, but in order for us to help business owners and leaders, they need to first recognize that they need our help.

Writing for the a large audience in the Washington Business Journal is one of the ways I can help business owners, managers and leaders transform, and one of the ways I get my material is by interviewing CEOs. Dan Akerson’s incredible success (so far) shows us what effective leaders can do, and I wanted to share as much information as I could about how great leaders do it, Grev said.

The articles touch on everything from the struggles at General Motors and how Akerson turned things around to the basics of great business not sitting in your office all day, creating teams within your company, providing strategic direction, managing change, mastering communication and more.

Dan said the most important thing in business is leadership. Period. Everything else stems from it. Dan is also a very inspirational man, not through his charisma, per se, but through his passion. He really cares about transforming GM, Grev said.

In addition to his training as a Growth Coach franchise owner, Grev has over 20 years of leadership experience, running from being a nuclear submarine officer in the US Navy to most recently a Director of Operations at Raytheon. He holds a BS in Systems Engineering from the US Naval Academy as well as an MS in Systems Engineering and an MBA from the University of Maryland. Ingar is the President of his Naval Academy class and also recently served on the US Naval Academy Alumni Associations Board of Trustees.

Heres a selection from the first article, published on June 10th:

(Dan) was certain in 2009 that GM would be doomed to an existence of mediocrity as a result of the governments stake. Easy money never produces great results. So, how did Dan transform GM with the cards stacked against the company?

I remember reading in the Wall Street Journal a while ago that Dan earned a reputation for asking hard-hitting questions while he served as the U.S. Department of Treasury representative on GMs board of directors. He told me that serving on the board for a year before taking over as CEO was a big advantage for me. It helped him learn a great deal about the business and helped inspire him to accept the job of CEO.

That might prompt you to ask: Accept the job? Who wouldnt accept the job as CEO of GM? Well, Dan for one. At the time, he was the fourth-largest equity holder at The Carlyle Group and didnt need the job. Moreover, GM was saddled with a tremendous amount of political baggage, as well as some structural issues, that drove GM into the mess they were in. Dan could have just as easily said no and kept his board seat.

You can read the articles in their entirety by visiting Grevs website: http://www.ingargrev.com.

For more information about Ingar Grevs business and executive coaching, business development consulting, and strategic advisory services, visit http://www.ingargrev.com or contact him directly at either ingar@ingargrev.com or (202)640-1908.


The Growth Coach was founded in Cincinnati in 2002 and is the only pure business and sales coaching franchise aimed at driving success while balancing the lives of business owners, managers, sales people, self-employed professionals and executives across a wide spectrum of businesses and industries. The Growth Coach specializes in group workshops as well as individual coaching with the goal of helping clients gain greater focus and leverage to work less, earn more and enjoy more fulfilling lives. The Growth Coach is active in more than 140 markets in the United States and abroad and is always looking to expand. For more information about the company or the process of opening a business coaching franchise as your encore career, visit http://www.TheGrowthCoach.com.

Find More Wall Street Press Releases

USA Business Insurance Announces Comprehensive Handyman General Liability Insurance Made Affordable for the Small Business Owner

New York, NY (PRWEB) June 20, 2013

Some may believe that being a handyman is not what is generally considered an exciting job. However, individuals who are good at the trade are in high demand and their customers consider the work being done to be of paramount importance. It is a truly talented individual who can take on plumbing, electrical, woodworking, building and repair projects and excel. Having insurance can mean the difference in remaining in a successful business or going bankrupt.

While having a good customer base is essential to earning a living, a small event can cause the business to fold even a lucrative one. A homeowner can slip and fall as a result of a tool or piece of equipment left in the wrong place. A plumbing fixture can be repaired and another pipe break that had nothing to do with the original repair. However, the carpeting or flooring was ruined and the homeowner is blaming the handyman. They decide to sue. Whether they win or lose, the cost of legal counsel is highly expensive. These are the times when general liability insurance comes into play. A specialized handyman insurance policy can cover legal costs even if the small business owner is found to be blameless for causing damage.

In order to get a business license to be a handyman in certain states, the proprietor must purchase at least a minimum of general liability insurance. Most homeowners who are spending several hundred dollars or more on a project will ask to see a certificate of insurance. Even if they do not request it, when making a presentation to a potential customer the certificate can oftentimes be a selling factor in convincing the client that the handyman is a professional and takes the job seriously. Handyman general liability insurance goes beyond the simple general liability insurance.

Other coverages can be bundled into one policy. Good tools are expensive. Theft, loss or damage can be a real budget breaker. What if the handyman cannot work at all due to a job-related accident or even an illness? Without work there is no income. Some of the handyman insurance policies can include loss of income.

USA Business Insurance continues to bring innovative concepts in general liability insurance for specific niche businesses in the United States. Each state may have specific requirements and these should always be taken into consideration. Those who need handyman general liability insurance are encouraged to learn all the advantages offered to them.

For more information about Handyman General Liability Insurance, go to http://businessinsuranceusa.com/commercial-insurance-handyman.

Entrepreneurs with Less Than 100 Employees are Optimistic Despite Economic Woes: Marketing Tip Sheet Shows Small Business Managers How to Spark Profits with 12 Strategies

Daytona Beach, FL (PRWEB) May 15, 2013

Dr. Elizabeth Kruger, a published marketing expert, shares on her blog why some small businesses are wildly profitable. Her tip sheet shows entrepreneurs and managers how to use 12 strategies to spark their profits.

U.S. entrepreneurs with less than 100 employees are unreasonably optimistic according to research by Penn Schoen Berland (2013). They seem optimistic since three out of four expect better sales next year and over half expect better growth and financial outcomes. However, three out of four of the respondents did not obtain financing and nine out of ten worry that the economy will hurt their business.

Dr. Kruger reveals how their optimism can predict the future. She knows why some start-ups are wildly profitable while most other businesses go bankrupt. Successful businesses know how to predict and manage results, but other businesses turn a blind eye to priorities.

Successful entrepreneurs prioritize their top customers. They know that highly profitable customers will produce most of their profits. Scientists have confirmed that the top 20% of their customers will be 16 times more profitable than their other customers. Their secret of success is to delight and duplicate these top customers.

Her marketing tip sheet presents 12 rules for sparking profits in a small business. These rules summarize strategies for using the 80-20 law. The first four rules answer questions about the mission, specialty, suppliers, and target market of a business. The next four rules improve basic marketing decisions. The final four rules help entrepreneurs set policies, target prospects, budget resources, and respond to change.

More information about these tips are posted on Dr. Krugers blog, strategicpower.biz

Her blog includes excerpts from Dr. Krugers upcoming book, Aesops Rules: 12 Strategies to Spark Your Profits. The wisdom in Aesops fables resonates over the ages. Dr. Kruger reveals how their timeless marketing wisdom helps entrepreneurs spark profits in their startup.

In 2011, Business Expert Press published Top Market Strategy: Applying the 80/20 Rule. Graduate marketing classes around the world are adopting Dr. Krugers book to enrich their textbooks. Barry Silverstein, ForeWord Reviews, praises her college supplement as a profit-generating tool.

In summary, Dr. Elizabeth Krugers tip sheet coaches male entrepreneurs to spark profits when starting up a small business. Reluctant entrepreneurs eagerly await Aesops Rules: Profit from Timeless Marketing Wisdom. She posts excerpts of this book and more tips on her blog, strategicpower.biz

Strategic Power has an A+ rating with the Better Business Bureau. Dr. Krugers coaching, writing, and speaking are sparking profits around the world. She will gladly customize guest blogs, speeches, and articles for specific purposes. Dr. Kruger has been a guest on 11 syndicated radio shows. Please contact Dr. Kruger directly for media interviews, speeches, and articles.

Related Bankrupt Press Releases