VIEWS: 3 PAGES: 2 POSTED ON: 4/23/2011
?You have finally got your business off the ground. You are buzzing. It all looks rosy. You have "best wishes" cards from all your friends. You now work for yourself and your boss is history. Your future looks bright. You enthusiastically launch into your new business and approach it with energy and vigor for the next few weeks. Like every new business, you are gung ho, dealing with inquiries, orders, deliveries and ordering supplies. Then suddenly your bank manager calls you to say that you are running out of money on the same day that your supplier calls you looking for cash. Yikes! So where has all the money gone? To ensure that you business is working from day one, you must be disciplined about the financials in your business. Remember that being in business requires you to make a profit and if you focus on this all the time, it will become a habit for you. Here are a few guidelines that you need to follow: 1. Prepare a simple budget with all your projected outgoings included including payments for tax and employee related charges. Also include your projected payments to suppliers based on the credit terms that they gave you. Find out as much as you can about "the cash gap" and ensure that you have the funds to support yours. 2. Prepare a daily and weekly cashflow tracker for your business and either complete it daily yourself or delegate it to someone who will complete it for you. Either way, you must inspect it and understand each and every number on there. 3. Always have a set of key performance indicators for your business - list for your business which will track the level of activity that you are doing and how well you are doing it. This is vitally important. i.e you may think you are busy doing 10 transactions per day at 100 dollars each but your earlier budget may has established that you need to do 1200 per day just to break even. Continuing to to 10 transactions will not help you and therefore you must make changes in how you deliver your product or service to enable you to do more. Not having a basic understanding of the numbers in your business is probably the biggest downfall for many budding entrepreneurs. Take a course if you have to. Very often when the numbers are not being understood they are ignored which only serves to compound the issue and no one wants to receive the call from the bank manager. Many small business fail because of burnout and the majority of this stems from a poor understanding of the basic fundamentals of business from the outset. This alone can put people off and thats why many people choose to get into a business where the majority of this work is already done for you and you just have to follow a system. Many offline systems are franchises. Online line you also get similar options. ------ Click here for an online business that takes the requirements for complete understanding of the numbers to a simpler level. It enables aspiring business owners to get started making money online from the outset. Derek O'Dwyer has worked with hundreds of business owners helping them to succeed in their businesses.
"What every start up business must do to guarantee success"