Dear Small Business Owner:
Congratulations on taking the risk and following your passion, you have done what 90% of the rest of the world will never be bold enough to do! However, I hope you read this note and implement the simple tips therein to make sure your venture does not end up dying prematurely like 50% of small businesses today. I know managing your money can be overwhelming especially with everything else you have going on, and also because this may not really be your area of expertise, but I hope you will give some thought to the following advice that will keep your business from dying, in fact these tips will help grow your business. Enjoy!
- Keep a budget – It is the road map to your destination.
- Keep good records – They are like pictures that show you what your business looks like.
- Try to understand the numbers – Yes, it may seem complicated at first, but trust me, you will get the hang of it once you understand the goal and seek help if needed.
- Sign all checks – don’t let someone else take the money you are working hard for.
- If you are selling tangible products and have inventory, make sure you do surprise and unscheduled counts.
- Avoid keeping cash in hand – The risk of theft is high when there is cash lying around.
- Deposit all bank sales daily, do not pay bills with cash, use checks and keep records. Trust me, this will keep you sane when you start wondering what you spent all the money on at the end of the year.
- Don’t be the obstacle to your success – Learn how to separate your business from yourself even if it is being run out of your basement.
- Treat your business like a person with a future, open a savings account and gradually build reserves for future expansion.
- Understand your costs, competitors and customers, this is the key to setting the right prices for your goods and services.
Hope these ten easy tips help you turn things around if you are struggling or help take you to a higher level if you are doing well. I wish you all the best!