The top 3 mistakes beginner entrepreneurs make

In this episode of Life of an Electrical Contractor, I address the three most common mistakes that entrepreneurs make, whether they are electrical contractors or any other business owners. If you don’t address these mistakes, you will lose out on more money than you can ever count, burn yourself out, and lose the love you once had for the business you worked so hard to build. The first is, invoice correctly. Many entrepreneurs make the mistake of fitting in the time to crunch the numbers when they have a slow day, but this pattern sets you up to be chasing money that is owed to you, and giving your labor away for free. Second, know your numbers.

Entrepreneurs often overlook hours and expenses, and don’t realize that they are losing money. Third, pay yourself. As a business owner, you want to reinvest into the business, but if you don’t set a specific, measurable rate for your labor, you will undervalue your own time, and never be able to make a profit. To hear more details, and learn how these lessons can come home with you after work, watch the episode.  

0:30 The top 3 mistakes beginner entrepreneurs make1:20 1 - Bill/invoice correctly2:20 Why I didn’t invoice correctly early on3:45 Maybe you’re going through this and don't even realize it 4:38 Are you screwing yourself with your billing cycle? 5:50 Create the system to fix the problem7:20 The people you invoice aren't your friends 8:01 2 - Know your numbers9:57 Breaking even means you lost money11:55 How do you calculate your hourly labor rate?13:02 Don’t wait until you lose money to realize it14:58 It’s painful but rewarding when you see how much you’re making15:42 3- Pay yourself16:35 When you pay yourself, you know what to charge per hour17:54 You drive the business, you have to fuel yourself20:30 Why be in business if you’re not going to pay yourself22:25 Everyone makes these mistakes, not everyone discovers them23:00 Review24:15 Why you need to know these three things, no matter what level you are in business26:33 Wrap up, don’t forget to like and subscribe