Cash management begins with cutting unnecessary expenses. However, choosing between an expense and investment is an important step. Investments benefit or improve a business. An expense is something that is required but controllable (flexible) in a business. Try to keep spending to 30% or less of income. This will help to regulate spending
Avoid excessive spending to have "The Look" - Do you spend because someone told you to look successful. Accomplish "The Look of Success" on a budget. Avoid extravagant expenses; such as certain types of cars, trips, software, parties, gifts, office locations, etc. Search for a deal that appears to cost more than what you actually paid. Don't go broke just to look successful. You will be successful and your money will last longer because you have developed wise cash management skills.
"Save money on expenses to have money for investments"
Examples of Expenses:
- Utilities are a required expense to operate. You can't eliminate utilities however you can manage the utilities to lower the bill. Meals are definitely variable. You can forgo a meal for a drink or have a small snack or look for great deals. Searching for deals is wise not cheap.
- Software recommended as a must have but that does not contribute a benefit to your business. You do not need the Lexus of software to operate. Begin with a free or low cost version and then move up to more features as your business grows.
- Only working with New Clients. Depending on your type of business there is a cost to add a client (time, advertisement, gifts). You will receive a $0 rate of return, if you're spend large amounts of money up front to obtain a new potential client and the potential client does not stay.
- Unnecessary Inventory Purchases- purchasing items that do not sell after a 6 months. Review your inventory to determine which items are selling as opposed to having just in case inventory. Inventory is only investment if you earn money from a sell.
Examples of Investments:
- Consultants and/or Employees - Delegating tasks will save so much time and money. Accountants save you time, money on taxes, penalties, unnecessary expenses, and interest. Accountants help you to manage your money for future reward. Therefore, we save you Thousands of dollars and your investment in our time is more than doubled. We bring benefit to your business. You invest in an accountant by delegating task or seeking advice for the DIY.
- Education - Education is a great investment to grow your business. Education will improve your knowledge base of your products and services. Education can be obtain through various methods. Seek training from A Business Mentor or Coach; Depending on the services, a mentor or coach can help you create and implement a Marketing plan, Social Media Planning, Services or Product offerings that best fit you and your business, Business Branding, Networking and Advertising. Investment into their services will improve on your mindset and marketing skills.
- Software and Application - Some applications are wonderful with saving time. Time is a huge investment in our business. Non income producing task will pull you away from income producing task. Some of my favorite time saving applications are Email Manager, Appointment Schedulers, Accounting Software, Payment Services (merchant accounts), Ever note, One Note, and more. However, you can not set it and forget it...applications save time with automation however someone will need to monitor and update the software. Software changes will break links and this is where your Consultants will come in handy!
- Savings, Benefits, Vacations and Retirement investments
Understand the benefit of the investment! Investing in the right services and people will help your business grow!
Consultants that save you TIME and MONEY!
- Business Mentors or Coaches
- Content Writers
- Copy Editors
- Social Media Managers
- Website Designers and Developers
- Finance and/or Insurance Agents
- Investment Agents
- Cleaning and/or Errand Service
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