Biggest financial mistakes in business

Biggest financial mistakes in business

Lesson Details:
April 27, 2020

Video Transcription: So now we have a fun topic what are some of the biggest not fun if you made not fun if you can find yourself in this but what are some biggest financial mistakes in business with you stupid people make this video is brought to you by Appy Pie’s Academy well and of course we talked about this because we want to help people avoid making these networks right so we're looking at the other guy and seeing what he did and making sure we don't do it right yeah you know even if you've made some of these mistakes they're not necessarily fatal you can stop making them one it's actually very it's a very serious topic actually I just we're joking because I kind of joke but it's actually really serious and I'm sure I made some of these mistakes myself yeah well we all have asked me how I know what these mistakes are one is to underestimate the needs I mean we all have the tendency to say I'm only gonna need X amount of dollars to start my business I'm gonna start making a lot of money really quickly I mean boy is this thing really gonna take off right and so we don't really count the cost before we get into the business and why yeah yeah well we want a bootstrap we don't want to get halfway down the road and run out of money and here we have this awesome business idea but we just didn't know what it was gonna cost and maybe we were too optimistic out of the gate in terms of the financial side of the business what it was really gonna take to get this thing up and running so a lot of times I'll see businesses run out they'll just run out of money and they it's not a bad business it's actually a great business is just undercapitalized to begin with I see that's so often and even sometimes it's very lucky that people don't get funding they don't get an investment because I know that they're not like raising enough and this would be like a dead end thing mm-hmm and I'm like oh it's good you're not gonna raise money so none of this is gonna happen like you know like I know that like oh this person is not gonna like they're not gonna be able to raise money so I'm like wow that's like a like like it's like a blessing in disguise yeah almost if you do get any money oh no yeah yeah cuz you're gonna see the on the wall that it's not gonna be enough yeah it's like they say in travel they say take half as many clothes and twice as much money and in business I say plan on twice as long as you think and choice as much money right is there anything other people like any other kind of mistake that you see people make sure sure then people take the money that they do have and they go large because oh yes and this big vision right in their mind well already exists which is why we're entrepreneurs right we're we're crazily optimistic we're like almost pathologically optimistic right so we have this beautiful vision and so we just start writing checks right we're gonna make this vision happen so you see this you know like with like a small start-up so instead of having everybody kind of work in their living room and we kind of get the thing moving and we get some income going and then then maybe we go rent an office we're coming out and we're gonna like get Google's office like straight out of the gate and then the next thing you know the money is all gone because we would really large on things that we didn't have to so the real smart business people keep things as cheap and as close to the best as they can as long as they can really because every toll you're not spending in the business is either a dollar that you're making and you're putting in your own pocket or it's extra time you have to prove this business concept because if you spend that money really quickly then again we're back at the I ran out of money and now my business is closed.

Yeah we're just talking to person today and they're like I want to open a store in three different states for strategic reasons see one is hard yeah yeah another no no but it strategic okay what is your strategy and then like strategy was not a really good strategy mistake you're gonna make you just made it x three right that's what is that person and you know what I think I annoyed them okay let's just say I'm starting one location so just let me allow that have the conversation cuz Alex won't let me say three so yeah like yeah cuz you're gonna make mistakes right you're gonna steps not gonna work out exactly what you think you have to make some pivot make some changes and now you're gonna have to do it times 3 and Sena times 1 I mean oh but you never open up 3 of the same thing at the same time without proving your concept you just wouldn't exactly yeah what I want to mention is a lot of times I see small business you know what let me ask you what's the biggest element what's the biggest thing that people spend money on in a business he's always like rent and stuff right stop yep exactly its payroll so the the thing that I see most often that that really tanks businesses and tanks them quickly is packing in the payroll so they start to they start to bring on especially more traditional businesses like accountants and dentists and you know people who are having a service business but that need to project an image let's start to bring on a lot of staff right away and they want good staff and so they're hiring a lot of full-time staff and it's so expensive it's crazily expensive so my recommendation is always if you need somebody physically it's part-time you know just you don't want to be somebody else's only bread and butter you know you you want somebody younger you want somebody who wants to be invested in your business and you want a part-timer because you can save so much money just having a part-timer and then you want to be working with remote people wherever you can like I live in Southern California so things are expensive here almost all my staff lives other places on purpose I don't want somebody who has to pay Dana Point rent I want somebody who has to pay Grand Rapids rent you know so my dollar goes a lot further and then we're not even talking you and one of my vaz lives in India I mean that's a whole different you know ballgame yeah but for my domestic staff I want people who don't live in high income cities because I can get a lot more for my dollar with my remote staff yeah I also you know to that point I also advocate sometimes the people like learn some skills people like are you gonna promote your business well I'll do SEO okay do you hire an SEO portion who's gonna cost you like thousands of dollars or you might as well just like is that the basic SEO is not even hard right it's like learn that learn you know basic this basic that how to set up your WordPress I mean that stuff adds up if you don't learn how to do them and it's just a good way and really after you bring them I mean you can see that it's pretty simple most of it and then you never have to ask anyone again you can just do it and sacred not only save money but save time because you oh you just need it then you do it and you're done mm-hmm instead of waiting for someone discussing it you know anyway I've hired coaches like I was tired of waiting for my wordpress people to always change stuff so I just hired a coach and so I would make a list of stuff I wanted to change we would get on skype she would teach me stuff and now I can do pretty much anything and you're right I don't have to wait or else and I figure out a lot of stuff I love hiring out but when you want to make a change on your website you just want to make the change you don't have to describe it and that's with the thing and yeah yeah you can be stuck on the WordPress thing for awhile but for them it's like 10 minutes mm-hmm yeah yep so those are the mistakes to avoid I know you're not gonna make them dear dear readers or listeners dear Watchers yeah listen there's subscribers never you not you you guys still watching.

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