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.
How should you be frugal (that’s a better name for it!) so much so that you will be able to find true success from doing so?
- Determine how you spend every dollar of your business’s budget.
- Is that dollar being spent the best way that it can be? Does whatever it is being spent on benefit your bottom line?
- IS there a better way to spend that dollar? Can you get more for it with another company or service or another opportunity?
- Is there a way to save your money better, with a better return on it?
- These are questions that any business owner should be considering each and every day that he owns his business. What can he do better to save more in his business for his business?
How many millionaires or even billionaires have you heard of that still drive their old, beat up cars? Why do they do that when they can afford to have much more beautiful and expensive cars?
It is not because they do not want to spend money or that they like being cheep. The benefit here actually comes from the fact that they like to save. Saving cash for your business is a great way to find true success because you will have those funds to use time and time again when you do need them.
The founder of Wal-Mart, Sam Walton, was worth $25 billion dollars at one point in his career. Would you believe that even with that type of worth he still drove his old, pick up truck into the job each day? Being frugal has its rewards as this is obviously what led him to having a net worth of $25 billion dollars.
When you are frugal, your business will prosper, year after year. If you are a spender, you won’t have the funds to allow that to happen year after year, will you?
All of these money savings and cash handling tips may not seem like that big of a deal to you. If that is the case, you are already doing them and finding success with it, or you are actually wasting money and not achieving the success that you already want.
Yet, managing your funds wisely is one of the key components to your success in a small business. Every entrepreneur must take the time to do this or they will find themselves without the benefits that they need so badly.
In the end, is it worth being a bit frugal to reach that huge, multi billion dollar net worth? There is no car in this world that can make that type of promise to you, can it?
Make sure you install these money managing benefits and principals into your daily routine and long term goals within your business.
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