Business management is not about customers, but about money management. How to manage your business to earn? How not to get bankrupt? Useful tips and tricks.
Manage a Business to Make It a Success
Managing a business is a complicated task. It becomes even more complicated if you are the business owner. Different feelings are tearing your heart apart: you want to invest more and to make your business the best, but from the other side, you want rewards for your hard work: financial rewards first of all.
How to manage the business to get more money from it? Why are some people constantly going on expensive holidays and enjoying their rich lives, while others who run businesses in the same field are struggling to pay bills? The approach is the thing that matters. First of all, approach to money management, this is what https://customwritingbee.com/ believes in.
Bank Account for Your Business: It is Important
Many people manage their business money from their private accounts. This is the main mistake and the main reason why they fail in most cases. You should clearly distinguish between money for business needs and your private money. That is why opening a business account is one of the main things that you should do at the very initial stage. After you have made so, stop using business money for your personal needs. Whatever your profit is, invest it into your business to get more and more return. Don’t let your money just be wasted, make it work for you!
Bookkeeping is a Significant Part of Money Management
Financial journals – have you heard about them? If you know what it is and if you even know how to handle them, you can manage your bookkeeping on your own. But if you have just heard something and know that such profession as a bookkeeper exists, you better hire one. A bookkeeper will make the following for you:
- Managing your financial records and financial journals
- Preparing your financial sheets and statements
- Creating invoices
- Tracking movements on your business bank account
- Preparing tax returns
If you don’t like the idea of hiring one more person, then you can think of installing some accounting software. Then, an accountant can visit your office once or twice a month, just to do auditing and fix issues that cannot be fixed by a software.
Establish Clear Payment Terms
Do you know that timely payments from your customers are sometimes critical for a business? Just imagine if a customer orders some equipment that costs several thousands of dollars, and then, after the delivery, this customer is delaying the payment. It is good if your business is big enough to handle this delay, but what if you have invested the biggest part of your sources for that order? Then, such delay can be fatal for your business. If you want to avoid it, establish clear payment terms and inform your customer in writing. Moreover, don’t be too shy, provide in your contract fines in case the payment is delayed. Then, even if the customer doesn’t pay in time, you at least be rewarded financially for your suffering.
Ask for a Deposit
Do you know that a deposit is a kind of guarantee that the customer will adhere to the contract terms? Do you often ask for a deposit? If you are too shy to do so every time when you are dealing with an order, just mention about the deposit in your contract. Always indicate clearly how much and within what time it shall be paid. And remember this golden rule of any business: no deposit – no product.
Provide Credit Extension
However, such practice as credit extension is not so common, but this is a good way to deal with constant clients or if you are delivering a really expensive product. As well, it works well for some services that are performed in stages during some period of time. In such case, you give your client an opportunity to pay after 60, or in some cases even 120 days after you did all that was required from your side. It is always good and it works in most cases if you provide a small discount for clients who pay immediately. You want to get all your money as fast as possible, don’t you?
If you are a business owner, you should be open to innovation and be creative to make everything better than your competitors and to make your client happy. This is a common belief. However, doesn’t matter how creative and good you are if you don’t protect your business. You have to be exact and clear when it comes to money. Create your own rules and follow them, then, your customers will know what to expect from you, and you will win.