The Danger of Wearing Too Many Hats
No business can survive for long without insightful financial management, and this is especially true during periods of economic weakness and recovery.
Business owners are tempted to cut costs and do more finance and administration work themselves, but this can somtimes be counterproductive for at least two reasons. Firstly, entrepreneurs are not necessarily trained or inclined to provide the range of services (forecasting, bookkeeping, financial analysis, banking, payroll, tax filing, etc) that are crucial to business success. And secondly, even if an entrepreneur could competently perform those duties, their time is better spent growing the business, not working in the business (generating ideas and revenue), rather than managing the books.
While performing certain financial management functions on a short-term basis might be neglible in the short-term, it would be unwise to adopt as a longer-term strategy. PNC Magazine in a 2019 article titled, “The Danger of Doing it All,” pointed to the danger of overextending and the potential risk of veering of course.
You must remain focused on your journey to greatness.
Small business owners often fall into the trap of thinking that shouldering the majority share of the workload is a good way to save money, but can easily become swamped. Trying to do too much can also lead to mistakes – especially when if you do not possess the skills set. Add to this the amount of time required for the task and you might jeopardize key projects and business relationships.
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