Number one, not setting aside money for tax. Having the tax man on your back is no joke. It is not fun, and if you are not setting aside money for tax every single month instead of spending it, then remember, it’s not your money it’s the government’s money and they have the right to come and seize assets to recover the money owed to them.
Number two, not ensuring your business is being set up to run profitably. You can run a profitable business from the first sale as long as you set up your financial systems and processes to align with that. Overspending and having money leaks in your business puts a huge strain on cash as well as huge, usually, a huge strain on you, personally, too. It is avoidable if you plan for profit from the beginning. Or, if you are not at the beginning of your business journey, then change the plans now. Build out a profit plan so that you are profitable each and every month going forwards. It is completely possible.
Three, lack of accountability. One reason many people choose to run their business is to get away from having a boss, but what does work well in a corporate environment is accountability. There is usually a very strong structure that creates accountability, and having accountability with ourselves is really, really hard. This is a major reason why people seek mentors and coaches, the accountability aspect, but of course, when you’re seeking out a mentor or coach, you need to make sure that that is one of the things that they offer because many group programmes don’t offer incredibly close accountability. Of course, that is one reason why we do offer massive accountability within the business wealth engine and we have accountability coaches, because this is something that I see way too little of happening. Having external accountability will ensure you have greater likelihood of hitting your goals.
Number four, lack of strategy. Not understanding the direction you need to head in to achieve what you want will inevitably mean that you can’t up getting to where you want to be. It’s like getting into a car and not knowing the way, not turning on the satnav or looking at a map and just driving around hoping that you end up where you might want to get to. Oh, and by the way, strategy and tactics are not the same thing. When you are thinking strategically, please don’t get sucked into the tactics.
Five, inability to scale in the way you want due to your business model. If you have a vision of making 2 million a year, but your business relies 100% on you trading time for money, then the likelihood is that this model can break as you scale. Make sure that the business model you have is going to scale to the place where you want your business to get.
Number six, no handle on cashflow. 99% of businesses fail, do so because they run out of cash. Not having a handle on cash can literally break your business and it does for thousands of businesses each and every single year. Don’t bury your head in the sand and think that everything will be okay with just another sale, with just another sale, with just another sale. Thinking that will end you up in cash hot water, and that is not a fun place to be sitting. Be all over the cash in your business. Be in control of it.
And number seven, lack of consistency. Consistency doesn’t mean relentlessness. Consistency means being consistent. If you plan to release a podcast every Thursday, then do that. If you plan to go live every Tuesday at 8:00 AM, then do that. Be consistent. So I hope this episode has been useful for you in understanding some key pitfalls to avoid. I also want to invite you to step into the Uncover Wealth community. This is my private community on Facebook. You can search Uncover Wealth Community in the Facebook search bar or head over to annetteandco.co.uk/fbgroup. I do a live teach in there every single Tuesday for Training Tuesday, and I dig much deeper in there into some topics. So I’d love to have you in there. Thank you so much for listening. Until next time, let’s find the clarity in your numbers. Increase your wealth and get more money in your pocket.