Common mistakes


You are skilled at what you do, or you spot a gap in the market that you know you can exploit and make money from, so you set up your own business. Many businesses that fail do so because they fail to put into place the right business practices when they initially set up.

We do not want to stomp on your enthusiasm, but you do need to be aware that business is hard and some of the most common mistakes are:

  • Not planning for tax

    This is the one main area that people new to business fall foul of. There are all sorts of taxes that you need to plan for. You might think that if you buy something for $1 dollar and sell it for $2 you have made a dollar profit, the truth is that you have actually made about 50c when you look at all the overheads and taxes involved.

  • The Wrong Structure

    Form follows function. There are many different types of business and other financial entities that you can use to run your business. If you get it wrong you can actually end up with a larger tax bill than you expected.

  • No business plan

    This is another major area of problems in business. If you don't have a plan, how do you know where you are going, and why? How will you know when you are successful? Again, it might seem to stifle the Kiwi Spirit of getting on and doing it, but you need a plan to help you succeed.