What To Do With Your Money
- The first step is to make a spreadsheet. It is necessary to construct a spreadsheet prior to opening a business. This spreadsheet should include what amounts should be allocated to raw materials, rent, taxes, insurance, a marketing budget, staff wages and any other costs pertaining to your business. Remember that these are estimates and it is therefore advisable to cut some slack and make sure that there is more than enough money saved up for unforeseen circumstances. Do this before starting your new business, expanding your current business or taking on new employees.
- Another tip for your current business would be to cut costs where possible, relook at these every quarter or so, so that you are not losing out on money. Small business owners should draft budgets more periodically than bigger firms as business circumstances are more likely to change more frequently.
- Don’t be afraid to shop around for suppliers or services you need to outsource for your small business. Budget is the heart of a small business and its importance should never be overlooked or underestimated.
Set Goals
Every business needs goals regardless of where they are in the business cycle. We need goals to be able to succeed, grow and maintain enthusiasm for our businesses.
- It is important to define long-term goals and short-term goals. Start by jotting down all your dreams for your business, no matter how unattainable they may seem.
- The next step is to categorise these ideas, goals or priorities. You can base them on the SMART goal setting concept. This means setting goals that are specific, measurable, attainable, relevant and time-based.
- Now start to put this plan into action, remember, if you don’t map out a plan now, it will be difficult to see where your small business is going in the future!
“Chase the vision, not the money; the money will end up following you.”
–Tony Hsieh, Zappos CEO
Make Sacrifices
It is also important to note that small businesses require a lot of time and sacrifices in order for them to succeed. You may need to give up things like family time in order to put all your energy into your business, especially in the growing phases of the business life cycle. If you are planning on starting a small business, you need to be aware of the fact that it will require huge dedication. Is is also important to learn how to delegate some of the work, hire the right people so that they can share the work load with you. PATC can help with all your financial requirements, including the beginning phases of starting up a business. It makes sense to start with a business plan.
Your Business Plan
We all have big ideas for our businesses but the problem comes when we require the financial aid for these ideas. When you approach investors or banks to assist you, you need to present them with a professional business plan. This is like a CV that you would send to a prospective employer. PATC will help you with this business plan so that you do not need to feel overwhelmed with terms like; proposed site, start-up capital, collateral or security loans, interest rates, balance sheets, forecasted income statements, cash flow projection…and the list goes on!
Make an appointment so that we can guide you through the above process. The first +- 1 hour meeting is on us – we want to see you make a success of your business.
Related Articles
If you enjoyed our blog you might find the following articles useful:
Why Do Small Businesses Need An Accountant?
