Entrepreneurs are experts at what they do. They know the ins and outs of their products and services. But, oftentimes, they aren’t experts at running a business. Whether it’s bookkeeping or growing your business, everyone needs a little help from time to time.
#1: Bookkeeping is Important
Bookkeeping is more than tracking revenue and expenses for taxes. It keeps track of your business and provides valuable insight. Who hasn’t paid you in a month? What supplies are costing you too much? How much are you really making?
#2: Don’t Procrastinate
No one wants to do their own bookkeeping. It’s tedious and time consuming. That’s people hire me to do it for them. But, if you’re going to do your own bookkeeping, don’t leave it till the end of the month. You’ll waste an entire day working on it when you could’ve spread it out.
#3: Make a Budget
Budgeting isn’t only for mega-corps and government agencies. It can help your business save money. Budgeting accounts for every dollar before you spend it and helps you make better purchases preventing wasted dollars.
#4: Go Lean
Lean is a business buzzword for good reason. The goal of lean is to eliminate waste and inefficiencies within your business. The original seven wastes stem from: transport, inventory, motion of employees/equipment, waiting, overproduction, over processing, and product/service defects. Reducing waste in these seven categories can increase your bottom line.
#5: Plan Ahead
Plan for your weaknesses. What is the worst case scenario? How much money do you need to get through a slow busy season? Addressing these weaknesses can minimize the risks of a bad situation.
#6: Build On What You Do Well
80% of your business’s profit comes from 20% of your products or clients. Pinpoint your moneymakers and focus on them. Putting time and extra effort into proven moneymakers will build your business faster than forcing flops to sell.
As a business owner, making wise financial decisions for your company is an ongoing process. But, you don’t have to do it alone.