Entrepreneurs Top Error: Underestimating Monthly Expenses
Written by Ken Gaebler
A new survey reveals small business owners top startup mistake to be underestimating their monthly expenses.
It's not breaking small business news to hear that, when first starting out owners, are bound to make mistakes, forget important lessons or overestimate the resources they have.
A recent survey from Hiscox USA polled small business owners, asking them to share their biggest mistakes. The No. 1 error new entrepreneurs make is underestimating monthly expenses (32 percent). Hiring the wrong people, not knowing to market or sell a product and failing to secure enough financing garnered 20 percent, 18 percent and 18 percent of respondents votes, respectively.
"Any professional starting their own business ... has a very clear vision of the service and value they will bring to their client base," said Kevin Kerridge, small business insurance expert from Hiscox USA. "But, if you don't plan for the basic essentials of running a business ... you could be very quickly going back to being an employee."
In September, the Wall Street Journal asked entrepreneurs to answer a similar question, with mistakes including "Overpaying for customers," "Raising too little capital" and, conversely, "Raising too much capital."
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