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A small business owner can unwittingly run up credit lines and credit cards to compensate for the cash drain of the owner’s overcompensation.The use of money borrowed on revolving debt let’s you have a paycheck but is is deadly poison to your business.

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Bad bookkeeping is also the gateway that leads to a host of other Worst Small Business Mistakes. Locusts do their damage and move on to destroy the next farm.

Nonproductive family members on a payroll stay forever, because you let them.

I have seen many cases where a small business owner loses everything. All from having non productive family members on the payroll. Are you one of those whose dream is to create a family business?

There’s nothing wrong with being generous to the members of your family.

Your business may have a great cash flow, and still lose money. For example, the cash flow may come from selling down inventory. At the same time, you may be propping up cash flow by tapping into credit lines.

You can easily miss all the the damage you are causing if you don’t do a monthly Profit and Loss statement.Sloppy, inadequate, or nonexistent bookkeeping will destroy your small business.You won’t know if you are making money, or losing money.A good business that has gone bad is often the result of the owner getting paid too much.If so, you are depriving your business of the money it needs to stay in business. Time and again the source of small business failure is over-extension of credit.A key employee may have been satisfied with her compensation. But do it with the money you earn after you bring it home.

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