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5 Mistakes New Entrepreneurs Make

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I was blessed growing up with strong female role models. My mother worked hard growing up to provide as an entrepreneur of her own business.

For many of us, being an entrepreneur offers wonderful opportunities such as increased flexibility, a creative way to use our passion, and of course to pay ourselves what we deserve.

All of us #fempreneurs can, however, lose sight of some fundamental things that could hurt us in the long run. After doing extensive research, I’ve found some helpful tips and tricks.

New? Go back to my story of financial freedom.

Here are several mistakes I didn’t consider starting out and some entrepreneur hacks I wished I learned sooner!

Undercharging Clients

 

I tend to be the kind of person that wants to give my last meal to someone who needs it. But, if your main source of income comes from undercharging family and friends, you may need to rethink that strategy.

Recently, I had the pleasure of watching an course on CreativeLive about learning your worth!

The class is Make More Money and Discover Your Worth.

Sue Bryce and Tiffany Angeles talk about how freelancers and entrepreneurs tend to push money away and not realize our earning potential. 

If you are a freelancer, you’ll want to also check out Galia Gichons’ amazing class called Personal Finance for Freelancers and Artists. 

She breaks down everything from basic personal budgeting strategies to developing an investment plan for retirement.

Here’s Galia’s Twitter Feed Below.

Take a look at several of other classes in the link below.

Sign Up at CreativeLive

If you still have your 9-5, CreativeLive also offers free training handouts on useful tips if you subscribe. I’ve saved all of their freebies on their website because they are filled with amazing info.

Creative Live has an awesome infographic showing an example of calculating your hourly rate below.

All rights to this image belong to CreativeLive, this is just an amazing example.

Not Putting Enough Away for Taxes

Not putting away the money you do earn can cost you up to thousands of dollars you may not have set aside. A good rule of thumb, is to put about 30% away (dependent on your income) for taxes.

Lack of Using Contracts with Others

If you are solopreneur, the odds that you don’t have an attorney.

Looking for a legal forms?

Using a contract that protects you and outlines the relationship is extremely important.

Here are a few resources for grabbing some amazing free or low-cost templates.

  • CreativeLive has a fantastic free contract template for videographers, bloggers, and graphic designers here.
  • LegalForms has amazing contracts that are customizable based off of what you want and also what state you live in. There are also some international options. Not to mention that the forms are extremely reasonably priced.

Not Using An Accountant

Are you frazzled with the numbers? Do yourself a big money favor and get an accountant in your state. It’s a must and can save you money on deductions.

Find one here and check reviews or ask for a referral.

 

Undervaluing the importance of networking in person and on social networks.

Getting activity on social media accounts can gauge interest in products, services, and provide you with live feedback on where to allocate your time and resources.

You can learn about the importance of branding here.

You can check out my social media planner kit here.

A Beautiful Mess is an amazing resource for online marketing and offers some coveted classes on Instagram and Blogging.

All rights to these images belong to A Beautiful Mess. This is just an example.

The truth is that you are going to make mistakes, the important thing is what you do when you do.

 

Until next time, finance friends.