We’ve all heard horror stories about how businesses ran out of money. One day their cash just dried up, and they were left picking up the pieces, or you know, having a nervous breakdown and not picking anything up at all. If you want to be the owner of a successful business, then you need to make peace with the fact that you’re going to be broke for a bit. Why? Because you can’t just go out and buy sports cars, fancy computers, and huge office spaces willy nilly! You need to buy what’s necessary, keep money in the business for important stuff, and build up a cash cushion.
Here are some dos and don’ts so you’re under no misconceptions about how your business cash should be used:
Don’t: Go Spending Mad The Second You Get A Big Paycheck
It’s all too easy to start spending the money in your head the second you get given a paycheck or right before. But hold your horses. What will buying all of these unnecessary things really give you? Sure, you may get an initial sense that your business is doing well – until you run out of money and you’re simply living client paycheck to client paycheck.
Put as much money away and back into the business as you can. At the beginning, you should be paying yourself as little as possible to ensure you have enough money in your business. It’s not that you should be struggling, it’s that you should be sensible.
Do: Automate It
Good news! You don’t have to do all of the finance-business stuff yourself. In fact, you shouldn’t. You started your business for a reason, and with a purpose. That purpose was to not spend your time pouring over numbers and finances and worrying about every little detail.There are services and apps like www.DataServ that can help you to automate your processes. You’ll save time and money in the long run this way. Automation is the key to success in any business!
Don’t: Attempt To Do Everything Yourself
Know when you need to hire. It could even be a temporary employee, an online employee, or a freelancer. Think of the things you could probably use some help with and then go out and get it. There are ways around hiring somebody permanently if you’re worried about another mouth to feed.
Do: Save Money By Being A Good Boss
Did you know that being a good boss can actually save you money? It’s true! Be nice to your staff, treat them well, and show them that you care. Do what you can to help. Have an open door policy. When you make the workplace a nice place to be, you’ll retain staff far better. This means less time and money spent rehiring and training. Don’t just pretend to care, though. Make sure you genuinely want to help them get as much job satisfaction as possible. After all, where would you be without them? Be smart!
Don’t: Focus Too Heavily On Cash
Although this is technically a post all about focusing on cash, you shouldn’t focus too much on cash. If you start doing things purely for money rather than because you’re passionate about it, you’ll likely get less money as that sort of vibe seeps through your work and into other areas. People will know if you’re offering them real value or not. Do something you’re interested in and passionate about and the rest will follow.
Do: Come Up With A Reasonable Budget
Every business should have a budget. Know how much you have to spend on everything, from marketing services to coffee and tea for the office. You should know your numbers and ensure somebody reliable is in charge of hitting your budget.