5 Mistakes That Can Destroy Your Small Business

​We are going to go over some of the leading mistakes that you should know about before you bury your own business.  These mistakes are never expected but before you know it, you've stepped in something and goodbye business.

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Contracts That Are Not Right:
There is not a business owner out there that has not dealt with contracts from customers, employees, suppliers, or elsewhere. As a business owner, you should be able to set the terms by using your own contracts.  Unfortunately, the wording or language in contracts might seem like something you understand about in a legal sense, you are a fish out of water. This is why it's really critical you have a lawyer that will read over the contract and make sure you understand it before you sign it.  In many cases, they can also advise whether they think you should sign this contract or not.
Protecting Your Financial Information:
It really is imperative that you protect your financial information at all costs.   Your business must be protected from customers, employees, and even outside sources.   If an employee were to get their hands on your financial information they could turn around and give it to your competitor.  If there is a past employee who is holding a grudge, they could do unbelievable damage to your business if they get their hands on your financial information.   First and foremost, have a plan of action to protect your business and its finances.
Errors In Employee Payments:
You might make a mistake deducting money from a cashier's pay due to a shortage in the cash drawer and then discover it was a miscalculation. Are your employees paying for the uniforms?  Are you taking out the right amount or too much? Other issues include the mishandling of tips and tip credit or the right amount for overtime.
Many owners are too busy to keep up with labor and wage laws so you should have someone on your staff who is an accountant.  They will deal with the laws as well as any issues that might crop up.
The Old-Fashioned Handshake:
There was a time that a handshake between two people was as good as a contract.  In this day and age, that's just not the case anymore. Today's world is almost completely electronic so two people working on a deal might not ever meet each other, let alone share a handshake.  First impressions are also drifting away. Therefore, always get something in writing and make sure both parties agree with the plan and sign it! What if you worked out a partnership deal but then the partnership falls apart, who owns what, regarding the business?
Always Have Insurance Protection:
At some point in time, there are going to be insurance claims and you need to be prepared for them.  Believe it or not, there are business owners who have really poor insurance or, in some cases, No Insurance!  Things happen and business owners must have good insurance policies that are not loaded with loopholes that could prevent you from collecting the rightful amount of money for damages.  If you have a friend who is a reputable insurance agent, have them look over your policy or talk with an attorney. This is your business, so treat it with respect.