1. Not preparing a budget
- A common mistake made by students each year is not taking the time to prepare a proper budget for their student enterprises. Remember, your budget is one of the most important financial planning tools you can use for your student enterprise.
- It’s vital that you and your team take the time to prepare a ‘Cash-flow forecast’ for your business. This not only lets you know how much money you need to start-up your business, but it also helps you monitor your progress. It lets you know if you need to make any important changes in order to meet your targets before it’s too late and you end up losing money!
- Having a cash-flow forecast will make sure that you are open to as few financial risks as possible in your business.
Find out more about preparing a cash-flow forecast for your business
2. Not budgeting for all business expenses
- Another common mistake students make each year when it comes to the business finances is not properly budgeting for all possible business expenses.
- Remember, when estimating your business expenses for each month, be as specific as you can be. List out all possible expenses in the ‘Expenditure’ column for the business for example wages, materials, promotional and travel costs.