1. Budget your spending. The best way to run your small business is to know how much money you need to make in order to break even and how much you have to spend to run your business on a daily basis. The key to financial discipline is realistic balancing of needs versus wants.
2. Don’t Spend. Invest. Spend your hard-earned money on things that will reap long-term benefits. Every expense has two faces: current benefits and long-term benefits. Businesses that spend on a long-term investment nature reap its benefits much longer. But remember to balance the cost versus the benefit. If your expense doesn’t directly help you in increasing your business or quality of your work, don’t spend on it.
3. Separate your personal and business bank accounts. It’s easy to lose track of your cash reserves and keep funding your business expenses from your personal account. You work so hard on your business, only to find out at the end of the month that you don’t have money left to pay for your living expenses. Manage your personal bank accounts online for FREE using My Money www.pastelmymoney.co.za and Manage your Business bank accounts with automatic bank feed importing your bank statement in your software package. www.ritzy.co.za/products/sage-pastel-accounting-products/sage-one-accounting/brochure
4. Maintain Records. Keep all receipts, organized, in a safe place where you will be able to find them when you need them.
5. Be lean. A business has two types of costs – fixed costs and variable costs. Fixed costs are like body fat. You have to bear the weight whether you make money or not. Instead of buying expensive software, try Sage Pastel flex. Which allows you to pay monthly installments for your software. Advertise on social media platforms, get your details out on all free online directories and try Skype meetings instead of travelling long distance.