Are You Making This 1 Mistake Too In Your Small Business? (it can ruin everything)




I've come to learn a very important entrepreneurial and business lesson, and it's the need to separate your business from your personal life. (this applies to personal businesses too


If you really want to grow your business beyond the current stage, beyond the casual buying and selling (trader) kind of business, you'll need to shove this hard truth down your throat. 


The worst mistake you'll ever make is to never separate your life from your business. Many people's businesses have gone into extinction due to this common mistake that is often made, particularly in Africa.


When "most" entrepreneurs tell people they are broke, but yet their business seems to be booming, people find it difficult to accept that they are truly broke... Not that the business doesn't have support capital, just that the entrepreneur has separated his or herself from the business & the money that belongs to the business isn't for pleasure purpose. 


Your business must have its own breath, it's own life & that should be separated from your personal life & expenses. 


Recently I had a discussion with a friend & she complained bitterly about how she was broke & how her business crashed just a few months ago. All her business capital's gone, she's owing her landlord 200k+ and she couldn't even afford to pay her little bills anymore, it's a terrible situation. 


But then I was curious to know how this predicament came about, so I asked her, what actually caused the closure of the business, she made mention of how she sponsored someone (with her business money) how she paid her school fees etc... You see, she made this terrible mistake, the mistake of not keeping account of what should be for business expense & what should be her cut. 


Don't suddenly become an EX business owner, just because you failed to know the importance of separating yourself from your business. 

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Your business expense should include:
Worker's salary, (if there are any) the budget for fulfilling orders, paper works etc... (anything that sustains your business) including data.  If your business requires it.


What your business expense shouldn't be:
You want to buy a personal car? That's good, but if the cash has to be withdrawn from your business capital or business savings, then don't do it.

If you want to build a house or buy a new personal gadget, don't make the mistake of using money from your business -- Resist the temptation no matter how strong it is. 
Don't lend people, whether they are friends or family money if it's meant for your business -- declare that you don't have money and keep a straight face and move on. 
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Yes, people will lament & complain -- You are actually not stingy because if you had it wouldn't you give? Of course, you would! But since you have separated your business from your personal life & have allowed the business to have its own breath & controls its own resources, then you can be able to expand your business from it's current local market to international markets. 


What's more? By the time potential investors will begin to eye your brand or business for a possible partnership, these are some of the very important management qualities they'll look for. 



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© #EC'Magazine

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