1. Hand To Mouth Pricing:
When you charge a client $500 for your service, that means you just made $500, right? Wrong. You’ve just made $500 minus how much it costs you to do business (ie. your rent, utilities, human resource, taxes, fuel, plus other unending OPEs).
When you price “at cost” or operate your business at razor-thin margins, you leave yourself next to no room to earn a decent income, market your business, nor save for off-peak seasons. And that sucks.
2. Freebies Galore (Aka “abusua nkyε nfa”):
You may fail to realise this, but taking on free gigs when you haven’t yet hit your quarterly or yearly financial goals is the equivalent of lending money you do not have. Time is money, friends. And speaking of the latter, friends and family who truly care about you should be happy to support your business.
3. Spending Too Much On The Wrong Things:
How many times do you host clients in your office each year? How many times do the prospects you meet in your office hire you compared to the ones you meet outside your office / virtually?
Instead of investing $12,000 a year on an upscale office you barely benefit from, would investing in a high-yield savings account better serve you? Instead of purchasing a $30,000 car, can a $6,000 car serve you just fine for now? Instead of a new iPhone, can that money go towards outsourcing admin tasks to a virtual assistant so you can focus on more creative tasks?
4. Mixing Business With Pleasure.
Hang on. Did you just pay for your family’s waakye with your business debit card? Wele isn’t on your payroll now, or is it? 😀
Seriously though, if you want to be able to make better informed financial decisions for your business, you’ll need to separate your personal expenses from your business expenses. Determine how much your business can pay you each month and set up a standing order to your personal account.
5. Overpaying On Taxes.
As a small business owner, you may be thinking you cannot afford to hire an accountant. But the question is: can you afford not to hire one? Do you have a solid understanding of how the tax system works? Are you paying tax penalties and fines that make no sense to you?
If your maths is no longer mathing or you’re finding the entire process stressful, now may be a good time to hire a pro.
We hope you found value in this post. If you’re looking to accelerate your career in the event / wedding planning industry, click here now to find out more about our next class: http://www.eventplannershub.com/upcomingcourses