You are making money with your business and it feels good but, the best thing for you is if you can keep making money. Here are some great habits to make more money
Plan
Planning means that you have to make and maintain a budget and make sure that the payments are in line with the budget you made. Haphazard spending will ruin your chances of growth and lead to your ruin.
When you have money it is very easy to divert it to some other thing that was not planned for. So, before you get the money plan for it for both unexpected costs and growth opportunities.
A plan will guide you on when to buy more stock, how much to buy, and possibly at what price. So, have a plan to ensure you stay on track and keep making money.
Borrow
Yes, borrow. You will not always have money so think about getting things on credit. The only way to do this is to develop a good relationship with your suppliers. Asking for credit and paying a little bit more on the supplies is better than not having any goods at all.
Use this credit in the same way your customers are using you i.e. buy now pay later. However, keep an eye on inventory and know when to go out and buy more. Buying in bits and drabs can be expensive as is over-purchasing as it will tie up money in unsold goods.
Hire
There will be times when you need a certain piece of equipment, vehicle or specialist skill. For an established business buying or employing can be cheaper in the long run but the up-front costs can be overwhelming for a small business. Therefore the easier route to go is hiring for a set period of time.
Hiring the items or personnel you need helps keep initial costs low and free up money for other tasks. Also, hiring offers you flexibility, so that as your business needs evolve you are not stuck with outdated equipment or an idle but fully paid staff member.
Bank
Cash is the life blood of your business. So put something away for emergencies, future bills and new inventory.
Keep an eye on the cash: how much money are you working with? How much cash is coming in? Not promises and agreements to pay later but, cash. How much of it is coming in? Keep an eye on slow-paying customers, who owes you money and which bills you yourself need to pay.
Your businesses will fail not because you lose money or that the costs are high or that your prices are not high enough but because you have run out of cash. So, put some money away in a bank.
If possible, open a savings account for your business and whenever you have a little more than you forecast, put it in there.
