Being an entrepreneur isn’t just a job description.
It implies a much different way of thinking about business, and money, than your typical person might have.
If you’ve been struggling to grow your business successfully, and it’s had a lot of financial issues, it’s possible that the underlying problem could be how you think about money.
Bad money habits are something almost everyone struggles with at one point or another. It can have a big impact on your everyday personal life, and the same goes for your business.
And habits are just that — habits.
You might not even be aware of them, and they’re pretty much ingrained into your patterns of behavior. But once you become aware of bad habits, you can start changing them.
Habits like “putting all your eggs in one basket” when it comes to income streams, or being inconsistent about putting money aside as savings, can catch up to you in a big way when you’re running an online business.
A recent article from Entrepreneur pinpoints three habits that could hurt your chances of entrepreneurial success.
Not diversifying your business’s income stream
The average millionaire has at least seven streams of income, according to recent research. While it is true that focus is a big part of business success, many business owners have misinterpreted “focus” to mean running a solo business a certain way and trying something else.
Focus is not the same as being blind to opportunity. You can still be diverse within your area of expertise in the way you offer your service or goods and perhaps in your decision to offer allied products and services.
Diversifying is the most potent way to get a large market share and to subsequently raise income.
Disabusing yourself of the “focus myth” will open you up to observation, and consequently to a new world where opportunities can appear in any transaction and any conversation.
Not maximizing tax deductions and write-offs
There are certain legal avenues for tax relief as well as deductions available to you Not taking advantage of these things is unfair to your business. The sad truth is that many small business owners are unaware and unenlightened about how these deductions work and often feel that tax planning is a way to evade the system, or as some would say, “game the system.”
The truth is, it is perfectly legal and not even that complex to use tax deductions and write-offs to significantly reduce what you pay the government. How do you think large businesses with significant taxable assets survive? You may need to consult a tax professional to get guidance.
Not keeping yourself on a “salary”
You may not need to use the term “salary,” but the fact that you are a business owner does not mean you should treat all revenue as personal profit once you subtact your staff payments and capital expenses. Taking home regular pay at regular intervals is a way to show respect to your business.
To learn more about bad business habits and how to avoid them, check out the full article over at Entrepreneur.