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Seven deadly sins

From sloppy accounting to poor hiring, here are the business-killing traps that every entrepreneur must avoid.

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Sloppy accounting
Sloppy accounting
Done properly, accounting is a diagnosis of everything that's right and wrong with your company. You should be able to complete a pro forma income statement at the beginning of the year that shows your recipe for making money. Crucially, you need to understand the ratio of sales to expenses that will result in profitability. You want to be able to say, "This business needs to gross $800K for me to have a $100K profit," as opposed to merely saying, "I hope I can make $100K one day."
NEXT: Unrealistic pricing
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LAST UPDATE: Jun 02 2009 | 3:58 PM ET
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