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4 Poor Money Habits That Are Leading You to Become Business Broke



Many aspiring business owners accidentally get into bad money management habits that can eventually lead them to business bankruptcy. Let’s break down four poor money habits that could lead you to become business broke if you aren’t careful. We’ll also go over ways you can cultivate smart, financially savvy money habits instead.

Bad money habits for your business

When running an entrepreneurial endeavor, it’s easy to pick up bad money habits that can sink your ship before it has a chance to sail. Here are four of the most common ways new entrepreneurs or executives mess up their companies’ finances.

1. Paying too much for office space

There’s no reason to pay for a beautiful office park or other expensive office space if you and your employees won’t use it, especially if you’re just getting started. Don’t invest in tons of company rooms or even an entire building until your startup is well off the ground and turning a profit (or is at least on its way to projected success metrics).

If you have several employees in your company, why not offer them remote work opportunities? Alternatively, consider using coworking spaces or sharing office space with other businesses.

2. Taking out too many loans

Next, be sure that you don’t take out too many business loans or use too many credit cards when paying for business expenses. While it’s true that any startup will have to take out some debt to pay for equipment, materials, and other essentials, taking out too many loans could eventually overwhelm your finances with the interest payments.

Since most startups don’t turn a profit within the first two years of their existence, you’ll need to keep this in mind as you take on additional debt. At the very least, try only to take out loans that require repayment a couple of years in the future. That way, any cash flow can be used to pay off the most important debts ASAP without allowing your interest payments to skyrocket in the meantime.

Keep this in mind when considering fundraising as well.

3. Overspending on inessentials

“Inessentials” will vary from company to company, of course. But for many businesses, these include:

  • Special amenities or perks for employees, like catered lunches.
  • New uniforms every year as you refine your company’s aesthetic and style.
  • Special workplace initiatives and programs.
  • Free things for your company clients.
  • Overzealous marketing campaigns—it’s better to have a small but targeted marketing campaign than spend tons of money on inessential ads that saturate the market.

You can usually avoid this by considering what you spend carefully. But that leads us into our next major money pitfall … 

4. Not practicing good accounting habits

Every business, no matter its size or objectives, needs an accounting department. But lots of young entrepreneurs will avoid getting an accountant, or even practicing accounting themselves if they are a one-person show. 

But not practicing good accounting from the get-go is foolish, plain and simple. By not practicing good accounting, you won’t have a good picture of:

  • How much money your company really spends on a day-to-day basis.
  • What your real profit margins are, or how much money you truly make.
  • How much longer you can stay solvent in the initial tense years of your business.

How to cultivate good money habits

While these bad money habits are pervasive in entrepreneurial culture, it’s also true that you can cultivate good money habits. Here are a few ways to overcome the above disadvantages, ensuring your company reaches its sales goals and starts generating profit.

Get an accountant

First, hire a professional accountant for your company. Accounting is crucial, so you always know how much money you have. Developing proper accounting procedures also ensures you don’t overspend your money and fall into unnecessary debt.

Sure, hiring an accountant costs money. But the odds are, having a talented accountant among your company’s employees will save you money in the long run. Plus, it will enable you to make wiser financial decisions as your business grows and scales with success.

Make sure the accountant uses good software, of course, that can generate reports like profit and loss statements and other essential documents.

Track all spending

You should track all your company’s spending to make sure you don’t overspend and fall too deep into debt. Many companies become business broke not because they fail to generate revenue, but because they take on too much debt and cannot repay all the purchases they made in their first few years.

By tracking your spending, you’ll ensure that your gradual revenue growth is enough to offset the cost of debt payments and interest, while also making regular purchases of supplies and materials for your products or services.

Invest in your company’s practical output

Lastly, be sure to invest all of your company’s revenue back into things that result in “practical output.” Practical output is best understood as the actual products or services you can later sell for a profit. For example, if your company sells “no medical” life insurance, your business should invest its revenue back into selling more insurance policies, not renovating unnecessary office space or hiring a bunch of unneeded employees to look more productive than you actually are.

By investing in practical output, you’ll shrink the gap between your revenue and expenses and help your business get “in the black” more quickly.

Break your poor money habits

Poor money habits can easily lead you to business bankruptcy if you aren’t careful. That said, it’s easy to avoid going bankrupt if you take the time to consider your business expenses, hire an accountant to help you steer your finances, and try not to overspend on inessential stuff.

Entrepreneurs just like you have succeeded for generations. You, too, can practice good business finances by keeping these tips in mind throughout your business journey!

Via AB


Unveiling the Digital Evolution: Web2 vs. Web3 – Understanding the Shift Towards Decentralization and Blockchain




The transition from Web2 to Web3 marks a significant paradigm shift in the ever-evolving Internet landscape. Web2, characterized by centralized platforms like Facebook and Google, is giving way to Web3, a new era embracing decentralization and blockchain technology. This article delves into the differences between Web2 and Web3, exploring the implications of this digital evolution on our online experiences and interactions.

Understanding Web2:

Web2, the current internet era, is dominated by centralized platforms that control and shape our online activities. Companies like Facebook, Google, and Amazon have established themselves as giants, offering services that rely on centralized servers and databases to function. Users interact with these platforms through interfaces designed and controlled by the companies, giving rise to concerns over data privacy, censorship, and control.

The Rise of Web3:

Web3 represents a departure from the centralized model of Web2, embracing decentralization and blockchain technology. In Web3, users have greater control over their data and digital identities, thanks to decentralized networks that operate without a central authority. Blockchain, the underlying technology powering Web3, enables secure and transparent transactions, smart contracts, and decentralized applications (dApps).

Key Differences Between Web2 and Web3:

Centralization vs. Decentralization:

One of the fundamental distinctions between Web2 and Web3 is the approach to centralization. Web2 relies on centralized servers and platforms controlled by a single entity, while Web3 operates on decentralized networks where power is distributed among participants. This shift towards decentralization in Web3 promotes transparency, security, and user empowerment.

Data Ownership and Privacy:

In Web2, users often surrender their data to centralized platforms, which can lead to privacy concerns and data breaches. Web3, on the other hand, prioritizes data ownership and privacy by leveraging blockchain technology to give users control over their personal information. This shift empowers individuals to manage and monetize their data securely.

Trust and Security:

Centralized platforms in Web2 require users to trust the platform provider with their data and transactions. In Web3, trust is established through decentralized consensus mechanisms, such as blockchain’s immutability and transparency. This enhanced security model in Web3 reduces the risk of fraud, censorship, and manipulation, fostering a more trustworthy digital environment.

Implications of Web3 Adoption:

Decentralized Finance (DeFi):

Web3 has paved the way for decentralized finance (DeFi) applications that offer financial services without intermediaries. DeFi platforms leverage blockchain technology to enable peer-to-peer transactions, lending, borrowing, and trading, revolutionizing the traditional financial sector.

NFTs and Digital Ownership:

Non-fungible tokens (NFTs) have gained popularity in the Web3 space, allowing users to tokenize and trade unique digital assets. From digital art to virtual real estate, NFTs enable creators to establish ownership rights and monetize their creations securely and transparently.

Decentralized Social Networks:

Web3 is fostering the development of decentralized social networks that prioritize user privacy, content ownership, and censorship resistance. These platforms aim to empower users by giving them control over their data and interactions, challenging the centralized model of social media in Web 2.


The transition from Web2 to Web3 represents a transformative shift in the digital landscape, emphasizing decentralization, blockchain technology, and user empowerment. As we embrace the principles of Web3, we are moving towards a more transparent, secure, and inclusive Internet ecosystem that prioritizes data ownership, privacy, and trust. By understanding the differences between Web2 and Web3, we can navigate this digital evolution with awareness and adaptability, shaping the future of the Internet for generations to come.

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10 Tips to Launch Franchise Business Successfully



Franchising has become a popular avenue for aspiring entrepreneurs to enter the business world with a proven concept and support system. However, launching a franchise business successfully requires careful planning, strategic execution, and a strong understanding of the franchising landscape. In this article, we’ll explore ten essential tips to help you launch your franchise business on the path to success.

1. Introduction to Franchise Business

Before delving into the tips, it’s crucial to understand the concept of franchising. A franchise is a business model in which an entrepreneur (franchisee) purchases the rights to operate a business under an established company’s brand, systems, and support (franchisor). Franchising offers a balance between independence and guidance, allowing franchisees to leverage the success of a proven business model while receiving ongoing support from the franchisor.

2. Understanding Franchising

What is a franchise?

A franchise is a contractual agreement between the franchisor (the owner of the business concept) and the franchisee (the individual or entity purchasing the rights to operate the business). The franchisee pays an initial fee and ongoing royalties in exchange for the right to use the franchisor’s brand, trademarks, and operating systems.

How does franchising work?

Franchising works by replicating a successful business model across multiple locations through independent entrepreneurs. The franchisor provides the franchisee with training, support, marketing materials, and ongoing guidance to ensure consistency and brand integrity.

3. Research and Analysis

Before diving into franchising, it’s essential to conduct thorough research and analysis. This includes market research to identify potential locations, target demographics, and competitive landscape. Understanding the market demand and consumer preferences will help you choose the right franchise opportunity that aligns with your goals and interests.

4. Choosing the Right Franchise

Assessing personal interests and skills

When selecting a franchise, consider your passions, skills, and experience. Choose a business that resonates with your interests and expertise to increase your chances of long-term success and satisfaction.

Evaluating franchise opportunities

Evaluate franchise opportunities based on various factors such as brand reputation, track record, financial stability, and franchisee support. Look for franchises with a proven concept, strong brand presence, and comprehensive training and support programs.

5. Legal Considerations

Franchise agreements

Review the franchise disclosure document (FDD) and franchise agreement carefully to understand your rights, obligations, and financial commitments. Seek legal counsel to ensure you fully comprehend the terms and conditions outlined in the agreement.

Legal obligations and requirements

Comply with all legal requirements and regulations governing franchising in your jurisdiction. This includes obtaining necessary licenses and permits, adhering to labour laws, and maintaining transparency in your business operations.

6. Financial Planning

Initial investment

Determine the initial investment required to launch your franchise, including franchise fees, equipment, inventory, and marketing expenses. Develop a comprehensive business plan and budget to forecast your financial projections and ensure you have adequate funding to sustain your business until it becomes profitable.

Ongoing costs and expenses

Consider ongoing costs such as royalties, advertising fees, rent, utilities, and employee wages when calculating your expenses. Monitor your financial performance closely and make adjustments as needed to stay within budget and maximize profitability.

7. Marketing and Branding

Developing a marketing strategy

Create a marketing strategy to promote your franchise and attract customers. Utilize a mix of online and offline marketing tactics, including social media, email campaigns, local advertising, and community outreach, to build brand awareness and drive sales.

Building brand awareness

Leverage the franchisor’s brand recognition and marketing resources to establish your presence in the market. Maintain consistency in branding, messaging, and customer experience across all touchpoints to enhance brand loyalty and credibility.

8. Training and Support

Franchisor support programs

Take advantage of the training and support programs offered by the franchisor to learn the ins and outs of running the business successfully. Attend training sessions, workshops, and conferences to enhance your skills and knowledge in areas such as operations, marketing, and customer service.

Training for franchisees

Invest in training for yourself and your staff to ensure everyone is equipped with the skills and expertise required to deliver exceptional products and services. Continuous learning and development are essential for staying competitive and adapting to changing market trends.

9. Launching Your Franchise

Preparing for the grand opening

Plan a grand opening event to generate excitement and attract customers to your new franchise location. Offer special promotions, discounts, and giveaways to encourage attendance and create a memorable experience for your guests.

Implementing marketing campaigns

Execute targeted marketing campaigns leading up to the grand opening to generate buzz and drive foot traffic. Utilize social media, local advertising, and public relations tactics to reach your target audience and maximize attendance at your event.

10. Maintaining Success

Monitoring performance

Track key performance indicators (KPIs) such as sales, customer satisfaction, and employee productivity to gauge the success of your franchise. Identify areas for improvement and implement strategies to address any challenges or issues that arise.

Adapting to market changes

Stay informed about industry trends, consumer preferences, and competitive developments to adapt your business strategies accordingly. Be flexible and open to change, continuously seeking opportunities for growth and innovation to stay ahead of the curve.


Launching a franchise business can be a rewarding and lucrative venture when done right. By following these ten tips and investing time, effort, and resources into planning, preparation, and execution, you can increase your chances of success and achieve your entrepreneurial goals.

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Unveiling Financial Secrets: The Power of Monitoring Your Tax Code for Maximum Wealth Growth




In the realm of personal finance, one often overlooked yet crucial aspect is ensuring that your tax affairs are in order. Finance expert Laura Pomfret emphasizes the significance of regularly checking your tax code to avoid potential financial discrepancies. In this article, we delve into why it is essential to stay informed about your tax code, the implications of being on the wrong code, and practical tips to maximize your earnings before the tax year-end deadline on 5th April.

Why Checking Your Tax Code Matters

Understanding the Basics:
Your tax code is a unique combination of numbers and letters used by employers and pension providers to calculate how much income tax should be deducted from your pay or pension. It determines your personal allowance and any additional factors that affect your tax liability.

Detecting Errors and Overpayments:
Errors in your tax code can lead to overpayments or underpayments of tax. Being on the wrong tax code can result in you paying more tax than necessary, leading to financial losses. Regularly reviewing your tax code can help identify any discrepancies and rectify them promptly.

The Impact of an Incorrect Tax Code

Financial Losses:
Being on an incorrect tax code can result in overpaying or underpaying taxes, impacting your disposable income. Overpaying taxes means you are losing money that could have been utilized elsewhere, while underpaying can lead to unexpected bills and penalties.

Legal Implications:
Failure to rectify errors in your tax code can have legal consequences. HM Revenue & Customs (HMRC) may impose fines or interest charges for underpayment of taxes due to incorrect coding. Staying proactive in monitoring your tax affairs can prevent such issues.

Maximizing Your Earnings Before the Deadline

Best Time to Contact HMRC:
Laura Pomfret suggests calling HMRC early in the morning or late in the afternoon for quicker assistance with any tax code-related queries. Avoid peak times when call volumes are high to receive more efficient support.

Utilizing Tax-Efficient Strategies:
Before the end of the tax year on 5th April, consider utilizing tax-efficient strategies such as maximizing contributions to pensions or ISAs, claiming eligible expenses, and reviewing investment portfolios for potential gains.


In conclusion, checking your tax code is a fundamental aspect of managing your finances effectively. By staying vigilant and proactive in monitoring your tax affairs, you can avoid financial losses, and legal implications, and maximize your earnings within the current tax year. Take control of your financial well-being by regularly reviewing your tax code and seeking guidance from experts like Laura Pomfret to ensure you are making the most out of your money.

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