Financial pitfalls to avoid when starting a business

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Launching a business can be a thrilling experience but it also entails financial uncertainties and obstacles.

Starting a business is an exhilarating experience, but it is also fraught with potential financial pitfalls. By avoiding these common mistakes and having a solid financial plan in place, business owners can increase their chances of success and long-term viability.

“That was poor inventory management because as a business owner, you should because there must be proper records of what is bought, and what you have left before buying, after buying what is the total, and after selling what is remaining.” “Resources are scarce and many times, after withdrawing their savings, businesses spend their savings on items/projects that aren’t the best for their business in terms of profitability. This is because they did not plan how their funds will be spent. So, when they receive this fund, they spend it on anything that comes their way in that period.

An Auditor at Ernst and Young, Oluwafemi Ososan, notes that not having a clear understanding of why a business owner is pursuing a business endeavor can lead to failure. According to him, merely saving money in a bank account may not be sufficient, as there are alternative options such as fixed deposits, treasury bills, and bonds that offered higher interest rates.

 

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joinkuda refund my money you promised to. It's been 7 days now I tried making a bill payment of ₦10,000. The money was removed from my account:2002654678 with no trace of the transaction failed or successful. I have shared my statement of account between 28-29th March with you

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