Learning From Your Mistakes

In business as in life, mistakes can and do happen to everyone, even the most cautious and well-intentioned individuals and companies. But contrary to popular convention, some of the most successful leaders and entrepreneurs understand that not only are mistakes an essential part of the growth process, but they also represent opportunities to learn and improve. Mistakes Are Bad! (Or …

The Power of Proactive Management

Every small business owner knows the feeling of having their day thrown off course by a crisis. For many, the situation can get so severe that nearly every day is wasted reacting to emergencies instead of pursuing a strategic plan. While you can’t ignore urgent issues, it is critical to minimize their impact on your time. Otherwise, you can’t accomplish …

Don’t Undercut Yourself

When you’re starting a new business or wanting to offer new products or services, it’s easy to think that pricing your products or services low will help you attract customers. The strategy of lowering your prices to attract more customers or clients is called penetration pricing, and it’s frequently used by small business owners to get their first customers or …

Can You Deduct Startup Expenses Before You Make Money and How?

Are you starting a business? When and how you deduct your expenses depends on whether you’re in the startup phase or have begun operations. What is the Startup Phase? For tax purposes, the startup phase is the time before you are actually in business. This might include investigating the creation of a business, buying or leasing business property, getting other …

How to Establish Business Credit

Even if you’ve formed a corporation or LLC, banks may still want you to provide a personal guarantee for any loans they make to your business. If you want banks to ignore your personal credit profile and not request a personal guarantee, you’ll need to establish a solid business credit profile. Here’s what you need to do. Understanding Business vs. …

Cash for Equity Can Cost You so Much More in the Long Run

Offering key players, such as developers, marketing directors and executives,?equity instead of cash?has been a long-running tactic that entrepreneurs have embraced over the years. When you offer equity in your company,?investors contribute cash, expertise or both for ownership in your company. It’s an ideal tradeoff: you get to take advantage of leveraging cash for your business and saving on doling …

4 Financial Tips for New Freelancers

Whether you’re just starting out as a freelancer or have been self-employed for years, it pays to stay on top of your finances. By making an effort to track your income accurately, put aside money for tax, and plan for your future, you’ll avoid many problems later down the line. If you’re not confident about managing your finances, don’t worry …

How Much Cash Should Your Business Keep on Hand?

Having too much cash can leave you skipping profitable investments or not paying yourself enough, but not having enough cash can leave you in a serious pinch. Here’s what you should consider when deciding the size of your cash reserves. What Are Your Regular Expenses? Most experts recommend that you keep at least three to six month’s worth of your …