One of the most vital things for making a business successful is cash flow.
Cash flow is the money coming in and going out of the business. There needs to be more money coming in that there is money going out.
It is a very simple idea but even the most dominating business men can forget this vital and basic rule.
Don’t listen to those who say “oh, its a tax deduction, don’t worry about that money” because tax deduction or not whatever money you spend hits your cash flow.
So think carefully with every business spending – do you need it? What value does it add to your business? Can you go another week without it? Does it make money for you? Can you test the idea without spending the money – is there another way available to explore that’s free or nearly free?
Once money is spent it is gone – it can only be spent once and that applies to credit card money. Credit cards are about creating debt – not getting you what you want. What you spend on a credit card is debt until you’ve paid it off and are not being charged interest for it.
To help cash flow aim to bring in extra income each week than what is normal. Aim not to spend extra each week than what is normal.
Get your business (and another one for your self) a savings account that pays you interest on every cent in it and stash cash each week in it for paying tax bills, insurance, registration, all the big bills.
Be smart and look after your cash and you’ll keep your business.