Mistakes Freelancers And Small Business Owners Make

Small business owners and freelancers alike, no matter how skilled at their job, are prone to making business blunders. If you’re making one of these common blunders, here’s how to avoid them in the future. (online business)

The first blunder is failing to support your small business crew.(online business)

On a recent TV episode, I saw Mario Batali explain how, when he first launched his restaurants, he wanted to put 100 percent of his attention on the customer’s delight. He’s learned over the years that keeping his employees happy is just as vital. Since then, he’s shifted his focus to focusing half of his attention on both customer and employee retention. He wants his employees to be pleased and picture themselves in their jobs for a long time.

Liz Theresa of Liz Theresa.com, an online business expert and web designer, agrees enthusiastically, believing that “it’s a mistake not to adore the snot out of your team members.” A successful business owner, she explains, finally recognises that a good team is the cornerstone of a thriving firm.

She also believes that the business owner should strive to make his or her employees pleased. Besides, she goes on to argue that happier staff are more productive, loyal, and care just as much about their clients as you do. In addition, she also believes that we should express gratitude to those who have assisted us in the course of our work.

Mistake #2: Focusing solely on yourself. (online business)

While it’s fun to post selfies on your personal social media accounts, unless you’re a model or have a business that feeds on personal images, a slew of selfies could potentially turn people away from your company. Tracie Fobes knows a thing or two about social media, having grown her Penny Pinchin’ Mom website’s fan base to over 600,000 on Facebook.

She believes that one of the most common mistakes people make while utilising social media is focusing too much on themselves. “They use it as a forum for self-promotion when they need to provide content that will entice their followers to interact with them as a subject matter expert.” Consider switching to this format to better serve your audience and save the selfies for your closest friends and family.

Mistake #3: Failing to set aside funds for Uncle Sam. (online business)

Many beginner freelancers forget (or don’t know how) to save for taxes, according to Erin Lowry, author of Broke Millennial: Stop Scraping By and Get Your Financial Life Together. The solution: She suggests setting aside 40% of each paycheck for taxes. There are two reasons for this. “Most people recommend 30 percent, but I like 40 percent because it includes automated retirement planning.” You can invest the rest in a SEP IRA.” She also recommends keeping receipts and keeping track of your business spending on a regular basis. “Trying to go back and think on when and where you spent money isn’t a nightmare.”

Elle Martinez, a popular podcaster and owner of CoupleMoney, couldn’t agree more and makes it a practise to check her costs on a weekly basis. She describes how setting aside time each week for administrative activities like monitoring income, expenses, and receipts has helped her stay financially organised. She recalls procrastinating and then having difficulty recalling all of the essential expenses at the end of each month. “Now it’s just an hour once a week,” Martinez says, “and I’m less stressed during tax time.”

Mistake #4: Forgetting to plan for retirement. (online business)

Thorium Wealth President and Wealth Advisor Peter Huminski explains how many freelancers and small business owners fail to plan for retirement. “Just because you don’t have a regular 9-to-5 work with full benefits doesn’t mean you shouldn’t plan for retirement.” He demonstrates how time and consistency may help you build a successful retirement strategy.

The earlier you begin planning, the less you will have to contribute in the long term to meet your retirement objectives. He also points out that effective retirement planning has tax advantages. The importance of selecting the appropriate strategy cannot be overstated. Whether you choose a 401K, a defined benefit, or a Roth IRA, the difference can be significant and result in significant tax savings.

Mistake #5: Failure to outsource.

Perhaps you take pride in being a successful business owner who wears multiple hats. Perhaps you advertise, negotiate deals, promote your firm, attend conferences, and provide genuine service while still juggling administrative responsibilities. “While it appears cheaper to attempt to handle everything yourself or it makes you feel like more of a boss, it is actually very costly,” says accountant and entrepreneur Eric Nisall.

He goes on to say that you may not only lose money, but you are also wasting valuable time that you will never get back, as well as losing the opportunity to accomplish what genuinely makes money. In many circumstances, using the time saved by outsourcing to generate income will bring in more money than the specialists were paid.

Mistake #6: Failing to keep track of profits and losses.

Neal Frankle of WealthPilgrim, a financial planner and Forbes contributor, frequently finds two major mistakes that freelancers and small business owners make when running their businesses. He mentions the fact that they have no idea whether or not their firm is lucrative. They don’t do a proper profit and loss statement.

This collects revenue, costs, and expenses each quarter so you can understand what’s going on with your company’s lifeblood. This allows you to establish whether or not your company is profitable. Always make a profit and loss statement.

Mistake #7: They have no idea how much money they make per hour.

Frankle claims that not knowing your rate is a concern, in addition to a lack of proper financial tracking. “This can also lead to their running an unproductive business for an extended period of time, accruing debts that are difficult to repay.”

Time tracking is also essential for knowing how much time you spend on your task. Knowing this can help you better establish your rate, eliminate time wasters, and figure out how to operate more efficiently.

Final Thoughts

These typical blunders can sabotage your greatest efforts and even ruin your business. Use these helpful hints to avoid headaches and save money and time.

Source: online business , online business ideas