The wise learn from other’s mistakes
Learn from the wisdom of others. Allow me to share my personal story, infused with valuable lessons for small businesses. By reflecting on my mistakes, I hope you can avoid similar pitfalls and establish your business on a strong financial foundation.
I confess, I wasn’t diligent about paying my bills on time. You might be quick to judge, wondering, “Who doesn’t pay their bills on time?” Well, that would be me, unfortunately. But before you pass judgment, take a moment to assess your own bill-paying habits. You might discover that you, too, have room for improvement. My intention in sharing this story is to increase your self-awareness so that you can prioritize timely bill payments and steer clear of the errors I made.
In life, there are moments when we are unaware of what we don’t know. I found myself in that predicament when I discovered I owed money to certain individuals. The first group I failed to pay was the travel agent. During my years of work and when I started my own business, I never prioritized vacations. I dedicated myself to the business, working tirelessly seven days a week for years. While this commitment took a toll on me, I thought it was a necessary sacrifice. However, when I eventually sold the business and embarked on a year and a half vacation, I realized how costly it had been. We had overcompensated, spending far more than if we had taken just two weeks off each year for the past decade.
Another bill I neglected was the dentist’s fee. My wife had a fear of dental visits, and I didn’t push her to overcome it. Consequently, she hadn’t seen a dentist since 2017. As for myself, I was arrogant enough to believe I knew everything about dental health. Since I experienced no pain and brushed my teeth diligently four times a day, I assumed I was in good shape. Astonishingly, I hadn’t been to the dentist in 17 years! However, when we finally decided to confront our dental concerns, we uncovered problems we weren’t aware of, and the subsequent bill was substantial. We ended up paying over $10,000 to address both of our dental issues. We would have been far better off spending a mere $200 each year for regular teeth cleanings, thus preventing the situation from escalating.
It’s worth noting that avoiding payment in both cases didn’t result in any savings. In fact, it cost me more in the long run. But the true cost I paid extended beyond monetary figures. How much productivity did I lose? How much stress accumulated? How much motivation did I relinquish by depriving myself of vacations for all those years? A yearly dental cleaning would have been far less traumatic than the multiple visits my wife and I endured as part of our treatment plans. I even needed a day to recover from just one of my visits! Consistently making incremental payments towards essential obligations is always better for one’s well-being than facing the burden of a massive bill due to procrastination.
Undoubtedly, there may be other bills I have overlooked, and you might be realizing the same about your own financial obligations. Let me raise a specific concern—how does your bookkeeping stand? Are you four months behind (if you handle it on your own)? If you employ a bookkeeper, have they repeatedly requested data from you for last month that you haven’t yet provided? Or worse, were you like me? Arrogant and think you know it all without seeking out expert advice. You can’t neglect this!! Paying attention to your books is an investment that proves more economical if done on the front end than the back end. Making financial decisions without accurate records is a recipe for expensive mistakes.
Paying the tax planner is less expensive than paying the IRS extra taxes.
In conclusion, the path to success lies in learning from the mistakes of others. By heeding the lessons I’ve shared, you can navigate your small business with prudence and ensure its financial stability. If you find yourself realizing that you have neglected your bookkeeping and want to avoid future financial pitfalls, I invite you to take action today. Don’t wait until the costs escalate; reach out to us now. Our team of experienced professionals is here to help you get your books back on track, offering expert guidance and support. With our assistance, you can make incremental payments now to avoid the burden of larger expenses later on. Take charge of your financial well-being and give us a call today. Your business deserves the peace of mind that comes with proper bookkeeping.
