Successful businesses are not run on trial and error. That’s because some mistakes can cost you millions to make. Get tips on how to avoid common money mistakes here.
Here’s a simple truth: everyone makes money mistakes.
Maybe you’ve overshot your budget for groceries once or twice. Perhaps you’ve impulsively bought something expensive when you were having a bad day. Or you might have bought something on sale even though you didn’t really need it.
We’ve all been there. And some of these money mistakes are easily forgivable and can be fixed by better discipline or money management.
In the context of business finances, however, there are some mistakes that are more fatal than others. In fact, some of the money mistakes that will be covered in this article may already be costing you millions in losses.
But don’t worry because we will also discuss tips on how to avoid these five common money mistakes that business owners make when scaling their businesses.
The Top 5 Money Mistakes
Scaling a business is no easy task. But if you could avoid making the following mistakes as you scale, you could get to where you want to be a lot faster:
Mistake #1 – Thinking that more products equal more money
Many business owners think scaling their business means offering their clients more products, programs, and services.
But the reality is that having more of them doesn’t necessarily equal more money. In fact, spending attention and energy on coming up with new things could take time away from the thing that actually sells in your business.
See, scaling is not always about adding more. Sometimes, it’s just about finding your best seller… and leaning your focus into that.
Mistake #2 – Diversifying before mastering one social media platform
Another mistake business owners commonly make as they scale is spreading themselves too thin across different social media platforms. You’ll see businesses jumping to selling on TikTok or any new ‘trendy’ social media when they haven’t even mastered their Instagram strategy yet.
As a result, they never get around to mastering any platform.
They become too busy maintaining their presence everywhere, and all they manage to deliver is mediocre work on all of these accounts.
What you should do instead is stick with one platform until you’ve mastered it. Once you’ve achieved mastery, that’s the only time you diversify.
Mistake #3 – Being cheap and saving money
Saving their way into closing their business is one of the most costly mistakes many business owners make as they scale.
You see, saving and scrimping money might be a good idea when you’re dealing with personal finances. But it’s definitely not when you’re trying to grow a business.
You might think you’re saving money by:
- Hiring the cheapest candidate you can find
- Not hiring at all and doing things by yourself
- Consuming free resources when you know paid programs are what you need
…but doing all these things will only delay – if not completely derail – your business’s growth!
Yes, saving can very quickly turn into costing you more money than you hoped to save…
Which is why I advise you to invest, invest, invest in your business to see it grow rapidly.
Now, one thing I learned is there’s a correlation between how much you save and how fast (or slow) you can scale your business.
Sure, you can learn a lot from free books, podcasts, and other free resources, for example. But these things won’t teach you everything. if you want to get the best results and if you want them fast, you’ve got to pay for speed!
Investing in business may seem scary at first. But the thought of staying stuck where you are, unhappy and unprofitable, should be even scarier.
Mistake #4 – Thinking small and underestimating what they and/or their team can do
Whatever vision you set for your business, you’ll be on a mission to hit.
Unfortunately, many business owners underestimate themselves and their team members. So, they set small visions and low goals… and call it a success when they hit these things.
This is a mistake. And it’s because scaling is about going bigger.
Here’s a tip: whenever you start to feel like your vision is getting a bit too crazy or your goals a bit too high… surround yourself with people who have even bigger goals. This will make you think that your ‘crazy’ goal is not too crazy at all.
You might even start thinking, Well, maybe I can do more!
Mistake #5 – Not looking at your numbers
Believe it or not, there are business owners who try to scale without looking at their numbers. They leave everything up to their CPAs… and can’t even be bothered to check the daily, weekly, and monthly reports.
This is a crucial money mistake because you can only increase what you measure. I mean, how could you get more money if you’re not tracking your daily sales? And how could you target more profits if you’re not even tracking your current profit margins?
Knowledge is power.
And knowing your numbers is one of the best tools you can use when planning your business’s future.
Start Making Better Money Decisions
The five money mistakes listed above are mistakes that many other business owners have made. Those business owners learned their lessons the hard way…
…But the good news is that you don’t have to!
As long as you can avoid the same mistakes and make better money decisions instead, you’d be well on your way to successfully scaling your business.
Now, what if you’re reading this list and realize you’ve already been making some of the money mistakes listed here?
Well… all hope is not lost.
You can still make better money decisions moving forward… while also reversing the impact of those money mistakes you’ve made!
And that’s where I could come in to help. If you’ve ever made any of these common money mistakes in your business, book a call with me here: www.stacytuschl.com/call. Let’s assess how you could fix the situation… and put your business back on track and ready to scale.