Money – something we can never have enough of, but, to make money in business you’ve got to be wise.
Success doesn’t necessarily just mean getting and maintaining x amount of customers, but also how well you manage your money.
Just because you’ve got money, doesn’t mean you’re going to have it for very long. If you aren’t making good business decisions when it comes to your finances then you are most definitely selling yourself short!
The basic, most important thing to consider in any size business is your income versus your outgoings.
And especially in small sized businesses, it matters!!
‘A fool and their money shall soon be parted’
Don’t be a fool – read our money management tips and see how you can use your money wisely
If you have a business plan, surely you have a budget. If not – get budgeting! The whole purpose of budgeting includes 3 main aspects:
- Income – expenditure = profitability
- A tool for making decisions
- Measuring business performance
You’ve got to keep on track with it all, by budgeting you can have a clear financial overview of your business and it’s needs.
Use an accountant and get in the know!
Even if you are a business owner it doesn’t make you a money expert. Invest in an accountant to help manage your finances and keep your business financially healthy by focusing on areas where your cash flow needs attention. Learn a bit more about it yourself – the more you understand it, the more prepared you are to make smart financial decisions.
There are lots of ways your business can save money by reducing unnecessary spending. Make it specific to your business and think about your biggest spends. Is a brand new car really a priority? Sure you may need it for transport to the office, client sites or even for advertising but getting a used car at a fraction of the price still gets you from A to B right?
A lot of business owners mark their profits and spend them before they even have them. Think of what you can treat yourself with from that money ey? Profits shouldn’t always mean to profit you specifically. Why not put it back into your business and where it is needed? Keep it safe to one side for those times when you wished you had!
Pay your bills
It might seem obvious but the best thing you can do is pay your bills on time – every time! Don’t forget about that credit card transaction or that lingering loan payment. The late fees can add up to a small fortune over time, money better spent on something else wouldn’t you say? Why not try setting yourself monthly reminders so you can see exactly what you are facing (and paying) each month.
Boost your cash flow
There are multiple ways to boost your cash flow which is essential, especially when times are hard and business is slow. Thinking of different strategies can really keep you at the top of your game when you’re starting to fall short. Provide extra services, discounts, special offers or even offering credit are all ways you can help to boost sales.
You can’t run a successful business without money unfortunately but by using our advice, you can help cut costs where it’s needed most and keep you in control of your finances at all times.
Don’t be a fool – keep out of the red and stay in the black.
You know what to do 🙂