The biggest reason most small businesses fail: money. It’s that simple. Maybe you are just starting out, maybe you are in need of raising some more capital. Perhaps you even need to upgrade some of the equipment you use. When seeking additional capital, no matter the source, here are 5 mistakes you want to avoid:

1. Subpar Business Plan

The last thing you want to do is go into a meeting unprepared, especially when seeking money. Make sure you have a concrete plan for your business and why you need funding. Financial projections must be included, as well as ways you will guarantee your potential partners your success.

2. Focusing on ideas, not fulfillment

Everyone has lofty ideas. The trick is being able to make them happen. You want to make sure you know the ins and out and details of what you are doing and not just the big dreams.

3. Not asking for enough

One of the bigger reasons companies fail with money is that they start out with too little or they don’t ask for enough. Be bold. Have projections and tell your potential partners exactly what you need. You also want to forecast for the worst-case scenario versus the best-case scenario. Murphy’s Law will apply to your business…don’t worry.

4. Too many partners

Be sure to do your homework and select a very targeted group of potential investors. You don’t want to be managing more expectations or relationships than you can handle. There also may happen to be conflicting interests. Again, do as much homework as you can before scheduling and going into meetings.

5. Poor cash management

Some circumstances really are out of your control – like an economic downturn. Other things, however, are clearly controllable. Make sure all spending is necessary. Don’t get into a “write-off” mode just because you can. You also don’t want to be overly optimistic in your expected income. Things can change in an instant.

What would you add? What mistakes have you made in seeking capital? Let us know here on the blog or over on Facebook and Twitter!

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Somehow the end of October has approached very quickly. For many businesses this means going into full-swing planning for 2012. If you are a Chief Financial Officer or are involved in planning your company’s financials for the next year, here are 5 investments you don’t want to miss out on:

1. Employee training

This is a good benefit to give employees that isn’t directly monetary. They will value this asset, as most people these days change careers multiple times in their lives. Any kind of continuing education that helps grow their skills is very valuable. Also, it’s just good business practice to always be in “training” mode. Henry Ford once said that if you consider yourself an expert, you have a long ways to go.

2. Technology

Consider investing in smartphones for your company. Or even just newer, faster computers. New technology often greatly increase productivity. This often ends up being a large investment, especially for smaller businesses, but is well worth it in the long run.

3. Human resources

A good human resources department can be the difference between growth and stagnation. It often gives companies the mindset of looking at employees as assets. If you can’t afford a full-time HR person, there are many ways to outsource your efforts with a PEO company. It’s not exactly the same, but helps with most of the those HR functions.

4. CFO (or consultant)

Having a good and experienced CFO can lead your company to infinitely more growth than not having any financial consulting. Even if you can’t afford a full-time position, hire it out on a project by project basis when you have specific needs. There isn’t much to say about this one other than that you should do it!

5. Acquisitions

Now, you don’t want to do this willy-nilly. You company must be internally stable. You also don’t want to acquire in order to fix a certain problem. It must be a growth solution and you have to have a good business model to back it up.

So what do you think? What investments are a must for your company? Tell us in the comments, or over on Facebook or Twitter!