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The Causes of Business Failure Often Experienced by Young Entrepreneurs

In Recent years, more and more number of young entrepreneurs. Unfortunately the spirit of passionate young people are often not accompanied by calculations done. Many are quick to feel the spirit at the beginning, but then their spirit turun.lah sooner one factor that often makes “wither before evolving” conditions and financial planning is haphazard. There are a few things to watch out for young entrepreneurs:

Investing beyond what is needed

Emotional factors make young entrepreneurs always want to look “well” in the businesses they build. Many direct employees, rent office in an expensive location, furniture and office equipment are all modern. According to Alexa von Tobel, CEO of LearnVest.com, a financial consulting firm, they should focus on products and services.

Issuing costs for something that is considered to be resolved

Often young businessman trapped in a state of “knowingly” and underestimate small things, but important, such as financial statements and tax. As a result, when businesses have to pay taxes, there are some conditions that make the company being fined. So that the problem can be quickly completed, they tend to use the services of a consultant besrbagai, which incidentally cost more than hiring permanent employees.

Do not pay themselves

Because very excited, sometimes not care whether we are paid or not. However, if this habit continues, according to Diana Ransom, an observer of small businesses could trigger chaos in the placement of money. Namely, sometimes because they feel desperate for money, without realizing it, business owners take the company as long as the money was not paid.

Do not plan for the possibility of the worst conditions

Because of his enthusiasm, young people often do not take into account the worst possible effort. They feel very optimistic that it tends to prepare yourself when the situation deteriorated.

Mixing personal and corporate assets

Young entrepreneurs are reluctant to separate personal and corporate assets. As a result, when there is a problem of personal assets can go missing, for example, to pay the debt. Therefore, it is advisable to separate these assets.

Using a personal credit card for business purposes

Business affairs is a business, do not confuse with the personal affairs. So, if you want to buy goods or assets to the company, using company money.

Utilizing the company money over capacity

There are times, when businesses run like this and hopes that buying appetite surge. That should have a fairly standard computer to type and print documents directly buy the most sophisticated computer without being able to maximize its usefulness. If this continues, there will be inaccuracies in the business that could undermine the potential benefits of raising efforts.

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