Entrepreneurial endeavors need consistent attention. A small business owner should have a financial plan in order to stay afloat each year. Think ahead. Do not be caught in a whirlwind of papers and panic come spring when you're unable to pay your taxes and facing the reality of going under.
There are simple things you can do to ensure your records are sufficient for tax filing and that you have a stable base for years to come.
What is your estimate per monthly income? How much revenue do you expect to bring in on average based on the business. If you do not have a standard ballpark number as a goal, how do you know if you are dragging or booming in sales? Every company should have a detailed file of incoming and outgoing business checks. Now would be the time to review those sheets. If you find disorganization, invest in software to do the work for you. You can even request the program to project revenue and expenses for coming months. Once you have those numbers you can create a financial plan that will give you consistent results, not accounting for periods of lesser profit. Nonetheless, with an accurate record you will soon learn when your best and worst selling months begin and end.
During off-seasons or months with loss, you need to amp up your efforts. Use this time to consult marketing companies and generate interest for your services. Also, cut back during these months. You can find cheap office supplies online. You will still need to make payments, so order cheap checks online instead of getting the expensive ones. Simple saving solutions make a big difference, especially when you are using items that you go through pretty quickly. Paper products and other office necessities will take out a chunk of your finances unless you look for the best deals.
Consider the profit versus the revenue. Your expenses must be considered in relation to what you bring in. If your expenses are too high and you're not making a profit, what was the point of all that hard work? Find a way to cut expenses. Do not get caught in a situation where you depend solely on loans and help from the banks either because that is a slippery slope.
Hopefully you will find some comfort in your organizational skills. Success is not about what figures you can write into a blank check, but how well you play the game. If you can survive both good and bad times financially then you are better off then some.
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