How to keep your business afloat?
You looked at the business ideas and chose the most optimal one for yourself, started its implementation. And then finally the day has come: you received the first proceeds from your business. Whatever you do: a store, a hairdresser, a car wash or a cafe, you should understand that the revenue of your small business on the first day is not profit. Moreover, for many days and months, daily earnings will not be your profit.
We advise you to be sure to keep a book of income and expenses, and always carry it with you. As the very first line in this book, you should have a record of the sum of all your costs of starting a business. Starting from the amount of the state duty for registration of an individual entrepreneur and ending with the amounts for the payment of detergents and cleaning products for cleaning the premises. And then on the day you open your small business, you will know exactly how much you need to earn to start making a profit.
Now about the daily revenue. Revenue is the money you receive from your customers for services rendered or goods sold. But by performing these services or selling goods, you waste electricity, water, some goods and materials. You also pay employees' salaries and taxes. And many more other miscellaneous expenses will appear in the course of work. And it turns out that the money earned for a day of work, you cannot go and spend on purchasing a phone for your child or a dress for your wife.
Every evening, write down the day's receipts in your income and expense book. Also, write down in this book where you spend money: for example, you bought a product, paid for advertising or bought gasoline for a car. Calculate the total of income and expenses daily and display the difference between: "Total Expenses" and "Total Income". And then you will know how much you still need to earn in order to start making a profit.
Why do we advise doing this every day? After all, by the evening you are very tired and it would be better to count in the morning and with a fresh mind. Better yet, once a week. And some, they will tell you, I don’t count at all: I spend all my money and I myself do as I want and I am not going to report to anyone. As a rule, these would-be businessmen are always without money. After working for a week, another will need to order a product, but there is no money for it! And where they went is unknown.
And for you, with the daily calculation of income and expenses, self-discipline will always work. After all, when a person remembers how much more he needs to earn in order for his business to become profitable, he will not mindlessly spend money left and right.
Take one more piece of advice. Set aside a small amount of money daily. Better cash. Any unforeseen situation can occur that requires quick and decisive action. And then this emergency reserve will be very useful. You need to save around 10-15% of daily revenue. And accumulate the amount of money. The amount of the safety stock must be equal to 50% of the value of the goods or materials. For example: you own a store. You always have a supply of drinking water for sale. But in a nearby restaurant, the water was turned off, and they bought all the water from you. But the money will be returned only after a few days. And then you will get your cherished emergency supply and go to the wholesale base for water. You will not need to look for money from friends and acquaintances or borrow at high interest from usurers.
If you can keep yourself in this rhythm for the first year, then I assure you, in the second year you will see that you have a little more money left for your personal needs. And in the third year, your small business will start making you profit. After all, it is difficult to create a company only for the first three years. It's like a child: for the first three years you raise him, and the rest of his life he raises you.