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How to Avoid Simple Mistakes that Often Lead to Business Disasters

How to Avoid Simple Mistakes that Often Lead to Business Disasters

Running a business is far from boring. You never know what is going to happen next, which is exciting, but it can also be daunting, because sometimes things can go so wrong that it puts your business in danger. Often, it is the simple things that cause the downfall of your whole business. Here are a few examples of what we mean.

Don’t Fail to Take the Right Action after an Accident

Accidents happen, and as disconcerting as it is to realize this fact, most of us will have several during our lifetime. Statistically speaking, you will have two or three car accidents before you are old enough to stop driving. So, it is important to know how to handle things should that happen. For example, to find out what is the statute of limitations is on a car accident in NYC, visit the link– always be prepared and informed.

If you don’t know and you file your claim too late you could end up badly out of pocket. If one of your expensive work vehicles was damaged, or if one of your workers was severely injured and you don’t follow the claims process properly you could have to compensate them yourself rather than having the other driver’s insurance company doing it.

File Your Taxes Properly

Another example would be making a mistake on your tax return. Something that is all too easy to do. If that happens, you open yourself up to a higher risk of being audited, which will be a stressful and time-consuming experience. Plus, you will have a hard time proving that you made a mistake and were not deliberately trying to avoid paying the tax you owed. In the process you could also end up being fined, even prosecuted. Fortunately, there are some basic strategies you can employ to help you to avoid making mistakes like the ones mentioned above. Here are a few of the most important ones.

Employ Experts

The first step is not to try to do everything yourself. It is best to recognize the gaps in your knowledge and employ people to cover them. So, get yourself an accountant, an official advisor, and consultants when you need to. Usually, not doing so will work out to be a false economy.

Learn to Network

Networking with others is highly beneficial as you will help each other with all kinds of things. This article is all about leveraging networking to succeed in business.

Actively Work to Understand the Rules

Each time you do something new in your business, ask yourself what rules and regulations you should be following. If you are not sure, take active steps to find out and follow them.

Get into the Habit of Using Checklists

Once you identify what you need to do in certain situations, create a checklist. They will keep you organized and ensure that important things are not missed. Learning how to map processes and use checklists can transform your business. You can find out more here.

The more prepared you are the less likely it is that you will make critical mistakes. But, you have to be careful not to overthink things. It is all too easy to fall into the trap of planning everything to the eighth degree and not taking enough action.

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by Dirk DeBie // Contributor to Businessing Magazine.

Opinions expressed by contributors are their own.