As someone with a young family and a small business, one of your main goals is to ensure there’s enough money to pay for household essentials and business expenses. Oh. of course you could utilize credit in order to have enough funds to take care of both; however, this leads to a giant problem. The money utilized in the present needs to be paid back in the future, and this means profits from the business aren’t maximized.
It should be all cash. Yet, there are bills to pay, items to purchase and, possibly, employees to pay. Sometimes, when sales are good, this is not a problem. Other times, cash received doesn’t equal cash spent. And, in the end, continual deficits can put your small business out of business. Profits need to be maximized at the point of receipt in order to grow a small organization. Here are some things to consider in order to let those profits flourish.
Business money for business
Money made by the business shouldn’t be used to support your young family — at least at not first. Home and company money can’t mix at the beginning for it leads to potential budgeting problems down the line. Make sure money earned by the business is placed in a separate account. At the end of each month, deduct the expenses incurred. What’s left is income. Pay the business first to ensure its profitability. Whatever is left can be used for personal investment or put back into the company.
This depends on what type of business you have. For instance, something like a video- or podcast allows for sponsorship by guests are businesses related to your product. You can increase profit by setting up a pay scale depending on the amount of sponsor spots and amount of time for each. Those who order a bulk sponsorship could receive a discount.
This doesn’t mean you’re a publishing company. Yet, if you have the ability to put together helpful documentation on your product or others in the industry, you have the potential of publishing a paperback or ebook on the subject. What you charge depends on the amount of pages, the importance of the material, and expenses like cover art. Should the publication be a success additional works can be distributed on a regular basis.
While it doesn’t make money, bartering certainly helps save money. Need someone to design your website or edit your work? See if you can barter with them to provide a needed service. In many cases the person who works with you will take something like free membership or a product discount over cash. Work up a list of possible bartering options available to the vendors you work with.