Are You Making These 9 Common Financial Planning Mistakes at Your Business?

When it comes to launching and running a successful business, bright ideas and hard work can only get you so far. Without savvy and comprehensive financial planning, you’ll struggle to stay afloat — particularly during times when resources and cash flow are tight. Developing a robust financial plan will help you to prepare for worst-case scenarios, keep the books balanced, and navigate major changes or growth within your business. To help you create such a plan, we’ve outlined nine of the most common financial planning mistakes, complete with advice on how to avoid making them. 1. Failure to Plan for Worst-case Scenarios Plan for the worst and hope for the best is the first motto of financial planning. Sure, you might not experience a sudden dip in customer demand, your top-performing staff members might not leave the business, and your most critical suppliers might not go out of business… But what if these things do happen? Top tip: Carry out a thorough risk analysis so you can plan for these worst-case scenarios and implement financial buffers and contingency plans.