When it comes to business success, you will need to consider these two principles as far as how money management goes.
First, consider this: You should only be spending money when there is a potential to earn money from that expense.
It is self explanatory, isn’t it? You should not be making an investment in your business, especially a small business owner, unless it will allow you to make more money as the end and direct result.
Secondly, consider this: “If it is not revenue, it is an expense.”
How does that play into the business that you are currently running? Does it offer you the ability to make ends meet successfully? Do you make purchases without careful thought about those dollars? If it is not revenue to you, it is an expense.
Managing your cash flow successfully will allow your business to bank funds instead of to loose funds. When you do this successfully, your business has the potential to be a long term success. If you want to be there in the future, manage your cash successfully, with an eye on just about every dollar you have.
Its Not Being Cheap, Its Being Smart
Although it may sound like we are telling you to be frugal or cheap with your business, you need to insure that the funds that you are spending will be funds that are spent wisely, without waste.
Saturday, November 13, 2010
Don’t Think You Need To?
If you do not think that you need to do this type of detailed accounting of your business, you are setting yourself up for a big failure. Now, that is not to say that you can not make a profit by being sloppy, but remember, we are talking about the long term here.
Even very large, international companies are very careful about where every penny that they spend goes. After all, this is money that could be doing something for the business, right? It does not matter if you have hundreds of dollars to budget or billions, tight money management is the key to successfully funding any business through good and bad times.
In addition, make sure you are monitoring these numbers as well. It does not do you any good to put in place a system and to use it but not to utilize it to the fullest extent. The fact is that you should be doing these things:
Even very large, international companies are very careful about where every penny that they spend goes. After all, this is money that could be doing something for the business, right? It does not matter if you have hundreds of dollars to budget or billions, tight money management is the key to successfully funding any business through good and bad times.
In addition, make sure you are monitoring these numbers as well. It does not do you any good to put in place a system and to use it but not to utilize it to the fullest extent. The fact is that you should be doing these things:
- Determine where money is going and if it is being done accurately.
- Determine where you can cut back in costs and expenses.
- Determine what you can do differently for less funds so without jeopardizing the actual quality of your business.
Managing Money Principles
What makes you profitable as a business owner? In the next chapter, we will look at the ways in which you must manage your cash flow and assets if you plan to have money in your pocket in the long term.
Do you have the ability to think about, analyze and then finally decide on business related decisions?
As we have discussed, your ability to do these things is what will hold you back or launch you forward today as well as well into the future. Now, take those ideas and determine just how well they fit into your ability to make decisions about your business success where it counts: the profit margin.
Throughout this chapter will we will talk about several aspects in detail, allowing you to fully understand what you need to do to be successful in regards to your business’s profitability.
Do you have the ability to think about, analyze and then finally decide on business related decisions?
As we have discussed, your ability to do these things is what will hold you back or launch you forward today as well as well into the future. Now, take those ideas and determine just how well they fit into your ability to make decisions about your business success where it counts: the profit margin.
Throughout this chapter will we will talk about several aspects in detail, allowing you to fully understand what you need to do to be successful in regards to your business’s profitability.
Wednesday, October 20, 2010
Growth Success Without Potential Waste
One of the long term things that every business owner must think about is growth.
Growth is the expansion of your business to the next level. This could mean expanding your business to include more products, to do more things, or to grow physically by adding more locations.
Growth is what holds the potential for the most success in the long term. An entrepreneur can find many benefits for themselves if they can manage to grow carefully, without going too far or stretching too thin too fast.
If that sounds difficult to do, it can be. Many businesses have failed by expanding too quickly and not having enough of the market share to hold them together. On the other hand, there are plenty of businesses out there that have not grown as much as they could and now are missing out on the potential larger profit margin.
Growth is the expansion of your business to the next level. This could mean expanding your business to include more products, to do more things, or to grow physically by adding more locations.
Growth is what holds the potential for the most success in the long term. An entrepreneur can find many benefits for themselves if they can manage to grow carefully, without going too far or stretching too thin too fast.
If that sounds difficult to do, it can be. Many businesses have failed by expanding too quickly and not having enough of the market share to hold them together. On the other hand, there are plenty of businesses out there that have not grown as much as they could and now are missing out on the potential larger profit margin.
Investing in Knowledge
If you are like many entrepreneurs, then you know that it is essential to have a good deal of knowledge when it comes to running your business.
As we have talked about, it is important to make sure that those that are providing you with the necessary information are doing so without taking all of your money just so that you can spend more.
For example, some of the most common mistakes the entrepreneurs that are just starting out make is that they just keep purchasing information. This is especially true of those that are starting a business online.
There is no doubt that you do need to have a good amount of knowledge to make something happen. You need to know how to get started, you need to know what steps to take and you need to know just where to do all of this. But, there is a limit.
One thing that you should take into consideration is your ability to make decisions. Once you have purchased the latest tell all kit, realize that you are ready to make some decisions.
If you purchase one kit or program and see another that seems to offer some additional benefits, you may be tempted purchase that one too. After all, it can not hurt to have some more information, can it?
It doesn’t hurt to have a good amount of information, except for the pocketbook, of course. Yet, that is not the problem. What the problem is what you do with it.
As we have talked about, it is important to make sure that those that are providing you with the necessary information are doing so without taking all of your money just so that you can spend more.
For example, some of the most common mistakes the entrepreneurs that are just starting out make is that they just keep purchasing information. This is especially true of those that are starting a business online.
There is no doubt that you do need to have a good amount of knowledge to make something happen. You need to know how to get started, you need to know what steps to take and you need to know just where to do all of this. But, there is a limit.
One thing that you should take into consideration is your ability to make decisions. Once you have purchased the latest tell all kit, realize that you are ready to make some decisions.
If you purchase one kit or program and see another that seems to offer some additional benefits, you may be tempted purchase that one too. After all, it can not hurt to have some more information, can it?
It doesn’t hurt to have a good amount of information, except for the pocketbook, of course. Yet, that is not the problem. What the problem is what you do with it.
Tuesday, October 19, 2010
Principal: History
One thing that many business owners do not take into account enough is their history and learning from it. When you consider how your history affects your future potential, you can better see why it is essential for this to be something you pay a good amount of attention to.
Do you learn from history?
Many of us will recall the times when our parent’s scolded us. “Don’t do that again!” “Learn from your mistakes.” All of these things are very important in the business world as well.
In this principal that is crucial to your business’s success, you do need to take into consideration your past and where it has been to help you to figure out where you and your business are going.
Do you learn from history?
Many of us will recall the times when our parent’s scolded us. “Don’t do that again!” “Learn from your mistakes.” All of these things are very important in the business world as well.
In this principal that is crucial to your business’s success, you do need to take into consideration your past and where it has been to help you to figure out where you and your business are going.
Trend Versus Trend Setter
Is your business a trend setter? Or, do you follow the trend?
If you are not sure, consider how this plays a role in your future.
As a trend setter, you are always one step ahead of the game. What you do, others look up to, but not just this one time. If you can manage to do this often, setting the trend that is, you can even create the fact that you will have others looking to you to set the next trend.
On the other hand, if you are following the trend, things are not so great. You will have to make up time for the other product or business that is doing well. You have lost precious sales time in the process. In addition, you will always need to watch the other guy for what is going to happen next, instead of being in charge of what that is. This can be a challenging place to be, actually.
Take a minute now to think about where you are in this equation.
Do you tend to follow the lead of someone else, hoping that there will be enough in the pot for you too? Or, do you seek out something new and exciting and try to incorporate that into your business?
Depending on where you stand currently should help you to see just how this affects your long term goals and ability to reach the success that you want.
If you are not sure, consider how this plays a role in your future.
As a trend setter, you are always one step ahead of the game. What you do, others look up to, but not just this one time. If you can manage to do this often, setting the trend that is, you can even create the fact that you will have others looking to you to set the next trend.
On the other hand, if you are following the trend, things are not so great. You will have to make up time for the other product or business that is doing well. You have lost precious sales time in the process. In addition, you will always need to watch the other guy for what is going to happen next, instead of being in charge of what that is. This can be a challenging place to be, actually.
Take a minute now to think about where you are in this equation.
Do you tend to follow the lead of someone else, hoping that there will be enough in the pot for you too? Or, do you seek out something new and exciting and try to incorporate that into your business?
Depending on where you stand currently should help you to see just how this affects your long term goals and ability to reach the success that you want.
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