Over the years we’ve encountered companies that have dug themselves into deep holes; either due to poor long-term planning, misinformation, or simply missing many marks that can bring profitability in. Today we’ll walk you through some of the common money mistakes business leaders continuously make. And we think some will surprise you, while a few may seem obvious.
Keep an eye on this list and try to recognize if your company could stand to make a few changes.
Six Money Mistakes That Will Affect Your Business
Take a look through our short list of six money mistakes that can hurt your business.
Is your company having problems as a result of the following mistakes made?
Do you recognize any of our points as poor financial decisions that your company has made?
While some issues are smaller than others, they’re common enough that we feel the need to highlight and warn company leaders to avoid making the same mistakes as many others.
1. Premature Diversification
Yes, diversifying your portfolio is an important and crucial step to growing your company, but timing is everything. When you have Saddock Advisory on your side, we can help you pick the right investment opportunities and advise on when to make them. Your success is our main focus and we’ll give you the right info to achieve it!
2. Spending on Superstars
Often times when a team is underperforming or stagnant at a certain level, it may seem like paying a pretty penny to bring in an expensive star is the answer.
However, there has been plenty of research to disprove this theory—including this study done by the Harvard Business Review. Essentially you’re spending more in the long run to bring in one superstar rather than investing time to address systematic issues and developing your existing teams to become highly successful.
3. Failure to Invest in High Performers
This point differs from the one above because when you invest in your high performers, you’re showing recognition of a job well done. Employees want to be challenged, valued, promoted, and paid their worth! It doesn’t take a business guru to figure that one out.
Failing to invest in top-performing talent could result in wasted resources and money due to high turnover.
4. Taking on Too Much
You’re a leader for a reason, as you’re used to taking charge. And you’ve likely built yourself up and climbed the ranks over the years. However, there comes a point when you need to hire people to take over certain roles.
Otherwise, you’re not only spreading yourself too thin but you’ll also end up missing important steps for growth.
5. Always Looking to Cut
There are some financial advisors out there who take a “cut back” approach and there are just as many business leaders who take that advice. Some of the worst financial advice is that of focusing solely on making cuts.
Instead, we like to focus on production rather than reduction, and doing so could put your company on the right path for continuous growth and stability, eventually opening up more doors.
6. Prioritizing Processes Over Quality
There’s a difference between being efficient and establishing an insane amount of policies. Rather than throw a set of processes at problems, spend some time looking for the root cause of the problem. This can help increase quality and keep your employees content.
Controls are often seen as opportunities to save money, but is it costing you efficiency and quality? Decide what it’s worth to your company.
These six errors may not seem like a big deal or may seem counterintuitive, but we have been around for decades and have seen it all. Saddock Advisory has been serving clients since 1980 and many of our clients have been with us from the start. We know what we’re doing and we’ll make sure you do too.
Concerned about any of the money mistakes on our list or do you simply want to discuss opportunities to get your finances in order? Get in touch with our team today and we’ll set up a time to learn more about your company, your goals, and walk you through how we can help!
Connect with Us
Contact our team by filling out our online contact form, sending us an email at info@saddock.com, or by calling 972-437-5201.