Five Things That Will Sabotage the Success of Your Small Business

With the holiday season in full swing, it’s easy to forego some of your financial duties, but now is the time to plan ahead for the success of your business. Start the New Year on a positive note by learning from the mistakes of others. Here are five things that will sabotage your small business:

By Deanna Barzak, Business Services Relationship Manager, Telhio Credit Union

1. Not completing a budget: Putting together a budget for your business, and sticking to it, is one of the easiest ways you can be sure your business stays on track financially. Before the New Year starts, put together an overall 12-month budget as well as a shorter monthly or quarterly budget that will help you stay focused throughout the year. Better plan for your monthly budget by evaluating your cash flow from the past year and pinpointing which months are short on cash and which left you with excess.

2. Not planning for a rainy day: You know how important it is to have a steady cash flow, but many small businesses don’t think to plan ahead for those months when cash flow is slow. Instead of waiting until you’re in trouble and having to reach for a credit card with high rates and fees, consider applying for a line of credit or business loan when you’re having a good month. Telhio Credit Union offers an array of both lines of credit and business loans that will give your business peace of mind when cash is tight.

3. Not separating your personal and business finances: Separating your personal and business finances is critical to the success of your business. By keeping your personal and business finances separate, you’re not only keeping your finances organized, but you’re also giving credibility to your business. It will also help you better manage taxes, bills and other payments.

4. Not knowing how to delegate: Owning your own business is a big deal, and you may feel that things won’t get done correctly unless you do them yourself. But time spent doing menial tasks that could be passed along to an employee is time wasted. Focus on what you do best, running your business, and let others take over tasks such as payroll or inventory.

5. Not balancing between long term and short term goals: While planning for your future is essential to the success of your business, too much time spent planning as opposed to doing is a huge mistake. Don’t let your goals for the future of your business overshadow the small day-to-day goals that you have set. The more small goals you meet each day, the easier it will be to reach your ultimate goal of success.

Telhio Credit Union is here to help your small business succeed. Contact a Telhio business lender representative today at 614-221-3233, option 6 to learn more about their business services and products to help you manage and grow your business, such as loans and lines of credit.

Telhio Credit Union is open to everyone who lives, works, worships or attends school within Franklin County and surrounding communities. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers six branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.