- Investing a lot in creating a new product
I have made this mistake many times, i.e. overly investing a lot of money in the development of new a product at once. Obviously ‘a lot’ is relative. My ‘lot’ can be less to yours.
The danger with this is, if the product doesn’t work, the loss is greater.
When developing a new product, entrepreneurs should strive for ways to do it in tiny bits and not expose all of their capital, and thus allowing them a safe feasibility test.
I wrote a detailed and humorous article on how to achieve this: Dating Advice That Can Save Your Business, From a No Game Entrepreneur https://buff.ly/2v7qto4
- Not budgeting revenue into business sustainability and growth
This is a simple not budgeting for the future.
This is the simple spending of revenues of a given product on other things other than the keeping of this product in stock or in production, and for growth.
In other terms, it is not thinking of the future and planning the cash flow spent properly – and for the likelihood of uncertainties.
- Not managing and monitoring cash disbursement
There are costs which can be bundled and reduced as time goes by.
For instance, say a business owner’s prepaid airtime bill rises to R2000 over time monthly. He or she can look for cheaper options. It could be by getting a cheaper and unlimited calls-and-internet mobile phone contract. They roughly cost about R1500 per month. It becomes a saving of about R500 per month.
The trick is always seeking ways to save money by looking for cheaper but quality alternatives.
Or even bundling expenses and going to suppliers to negotiate discounts with the new consolidated bundle. E.g. Say a website hosting package costs R50 per month. And say the provider of the hosting package provides a 10% discount when it is paid at once for 12 months. If the business is sustainable to afford this once off payment, go ahead and earn the 10% discount and save.