Business owners don’t know what they don’t know. The beauty of mistakes, however, is that they make you infinitely wiser. Smart business leaders won’t flinch when they lose a client, customer or potential revenue source -- they’ll reinvest that mistake into their own learning.
What new business owners can’t afford to lose, however, is money. When you’re bootstrapping -- using personal savings to fund your new venture -- you’re putting your financial future on the line. Lost money can directly impact health, future, and immediate well being.
With approximately 543,000 small businesses launching each month, the harsh reality is that the majority of these will fail. So if you’ve invested money into your business, there is a distinct possibility that you’ll lose everything. But that doesn't have to be the case.
The best way to prepare for the worst is to learn from successful bootstrappers who have been there before. Below are seven financial mistakes to avoid, especially when self-funding your new venture.