Common Mistakes Small Business Owners Make with Lynn Demmons

 

by Ashley Little

As a child who grew up in rural South Carolina, Lynn Demmons defied the odds. “I am not a statistic, She said.” “I am the oldest of four children, born to parents who are both Southern Baptist preachers. As children, we were raised in the church. Every time the doors of the church opened; we were there. Today, I am happily married, and the mother of one son.” 

“Cultural stereotypes, whether negative or positive can permeate throughout a community and potentially be detrimental”

What inspired you to want to be a finance expert?

 Oftentimes cultural stereotypes, whether negative or positive can permeate throughout a community and potentially be detrimental. For example, the “black dollar” is often spent on shoes and clothes rather than houses and land. All children deserve houses and land. We are called to build generational wealth and leave an inheritance for our children’s children.

 

What are some strategies you will give to our readers to help them better manage their finances? Financial literacy is more than just knowing what to do with your money, but it is also doing the right thing with your money. Many people can tell you they know they should have a budget and they know they should be saving, and they know they should be investing; however, knowing and doing are two different things. I often share that the words” I know that” are three of the most dangerous words a person can use when referring to their finances. A better choice of words is “I do that.” Therefore, to be successful you must F.A.C.E. your finances. F if Financial Psychology, A is Accountability, C is consistency, and E is education with implementation. Your financial psychology is how you think about money.  Everyone has heard or knows someone who has said: “money does not grow on trees.” However, I want to share one of my favorite quotes related to this topic.  Groucho Marx is noted for stating, “Money frees you from doing things you dislike. Since I dislike doing nearly everything, money is handy.” This quote provides a different perspective on money that is typically shared by the wealthy. Reflecting on this quote, one of the most important things money can do is provide the opportunity to sustain your family for generations to come. It is particularly important that I leave a legacy not only for my child but for future generations who follow. This is a different way of thinking than has been passed down from generation to generation but this thinking allows us to move to the next level or dare I say the next dimension in not only dealing with our finances but making wise investments to grow your money. Moving from the concept of working hard for your money to allowing your money to work hard for you.

What are some common mistakes business owners make financially when starting a business? Unfortunately, very few start-up businesses make it beyond their 3rd year. Failure is usually down to a number of clearly identifiable mistakes, which if small business owners are aware of, can increase their chances of survival.

 

Here are the top 3 common mistakes which small businesses tend to make.

 

1. Poor Record Keeping

Some business people are not born administrators; they feel more comfortable getting out there and ‘doing the business’. Paperwork is too easy to ignore but can never be put off indefinitely.

 

Sales, purchases, and other expenditures must be carefully documented, so you know whether you are making a profit or not. Invoices must be issued on time and chased up promptly if there is a delay in payment. It’s all very well having the sales but poor record-keeping can hold you back.

Having your paperwork in order will also save you time when it comes to your accountant doing your year-end books! It is highly recommended that you use an electronic process to minimize mistakes. 



 

2. Growing Too Quickly

Surprisingly, growing too quickly can be a problem. You have to be disciplined enough to only take on work you can handle. If you are tempted to accept too much you could end up disappointing not only the new client but also your existing ones.

Also, don’t under-estimate the impact rapid growth can have on your administrative burden. As I mentioned earlier, getting behind on the paperwork can have an equally damaging effect on your business.

 

3. Trying To Do Everything

Finally, the problem most small business owners have is the fact that everything falls on their plate. Inevitably this is how it’s likely to be in the beginning, when the limited budget means that staff is a luxury, but as the business grows to be aware that you cannot continue to do all tasks. There will come a point when you become inefficient and not have enough time to complete everything in sufficient detail. Taking on an extra pair of hands will increase your costs but you will be surprised at how much time will be saved, allowing you to do what you do best.  

 

Tell us about your financial development training company, Demmons Enterprises.  

The mission of Demmons Enterprise is to help clients, make, keep and grow their money so they can do the things they are called to do and support the causes that are near and dear to their hearts. Demmons Enterprise conducts seminars and facilitates sessions for corporate and government executives, academia, and not-for-profit organizations helping them to make their money, keep their money, and grow their money. 

 

“Overcoming money obstacles requires focusing your resources intelligently” 

 

What makes your services unique?

Our services are unique because of customizable solutions that are provided to clients according to their needs. Financial Industry jargon can be complex for everyday professional and many small business owners. My clients benefit because they receive information that is easy to understand, relevant, and applicable to achieve results immediately. So what that looks like for them is a customized plan of action that they can begin to work on the same day that will produce results in a short period of time. We begin with the low hanging fruit (identification of quick wins) and build upon that momentum. 

 

What is some financial advice you would give to readers to help them financially through this pandemic?

Time, attention, money, and willpower are limited resources. Overcoming money obstacles requires focusing your resources intelligently. Building focus is like building a muscle. It requires intention and effort to encourage growth. Build your financial muscle during this crisis, take time to read and learn more about an area of finances you are interested in.

 

What can readers expect from you in 2020?

We are continuing to roll out multiple projects. One, in particular, we are truly proud of is the “Raising a Financial Genius” training series. The book “Raising a Financial Genius: Whether You’re Good With Money or Not was released 2 years ago. We partnered with WYTV7 to provide training and workshop series to Colleges and Universities throughout the southern region of the country. 

 

Contact Lynn Demmons via social media @DemmonsSpeak, via email at info@demmonsenterprise.com or via phone at 833-683-9993 x4025 or 470-236-8282. Swing Into Their Dreams Foundation: swingintotheirdreams.com; swingintotheirdreams@gmail.com.

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