subject: How To Manage Cash Flow When Self-Employed [print this page] How To Manage Cash Flow When Self-Employed
Every successful businessperson knows the importance of managing cash flow when running a business. The trick is to spend money to make more money, but not too much that you will end up broke again. Otherwise there would be no point being in business in the first place.
Usually the rule of thumb is to divide your cash flow into three parts. You can take one third of your earnings and place it into a savings account for the future. Another third of your business revenue can be placed in an account that you use for business expenses, and the final third can be used for personal expenses and living.
If you want to be successful in business and yet you are not very good at keeping track of your money you may want to hire an accountant. The accountant that you hire should be one that you can trust not to embezzle your money, and to help you make wise business decisions.
Another person that can help you with cash flow management is a business consultant. This person is one who would help you devise a successful plan of action for business expansion. This person may not necessarily be your accountant, but since this person is responsible for giving you sound business advice that person can help you come time to make major financial decisions.
Consultants not only help you with major financial decisions but they also will help you devise new employee incentive programs, expansion projects, or management teams. They will be training you all that you need to know to help advance you and your company. They will help you with nearly any aspect of your operation if you let them. The most important aspect, however, is with managing cash flow and spending.
Another way that you can find help for your business is by joining various non-profit business organizations. Many of these groups offer volunteer business counseling and even sometimes give out grants to those serious about establishing a solid company. They will also help you put together a business plan as well. These people can usually be found within your community, such as at a local job center or university.
If you are looking for help managing your business cash flow and other operations you will also want to become a member of you local chamber of commerce. It is a good idea to become a member of the Better Business Bureau as well, and perhaps an e-commerce Bureau. The more well known you are and the better reputation you have the more customers will trust you, especially when ordering online.
Business plans usually will have goals in them to help you with projecting future cash flow and how to spend it if it did come. You can also read other informative articles such as this one, and join online forums that discuss various aspects of running a business. Each and every form of networking you participate in will help you learn more ways to manage every aspect of business, including finances.
If you are a person who needs extra income while you are running your business you can also find quite a bit of part-time or temporary work during the start-up phase. Be creative in your quest for more work, because you may need the money during the first few years to keep going. You can find jobs in places you would not consider looking normally.
For instance, if you are a graphic artist looking for more jobs to do, you don't have to wait until your local newspaper calls you. You can go to job bidding sites online and find work with them. Not only that, but if you are a writer you can also earn income writing resumes.
Whatever you do to manage your cash flow, and to create more cash flow is all the better for you. As long as you find part time work-or even sometimes full time work-that will not take away from your business production you will be on your way to a successful future. You will be able to have an income no matter what.
Some other money saving ideas that you may want to consider when running a business is cutting down on personal luxuries, such as going a few months without cable (unless you need it for your internet service). You also may be able to save money while pioneering your business if you stop spending money on twelve packs of beer every weekend, or buying expensive video consoles.
During the first few years that you start a business the income fluctuates quite a bit. This will happen until your business is fully established. You will need extra discipline during this time to control your spending. Not only that, but even after you have been in business for awhile you will need discipline to save even more money in case you need it for operating costs or emergency business expenses.
If you cannot do this on your own you can often find professionals who can help you with this aspect of business. If you cannot afford to hire on a person full time for your accounting or consulting needs then you can usually find them for certain times of the year, such as tax season.
If you need help running your business and managing your cash flow, there is never a shortage of it for you. You just need to know where to find it. The Internet is one place that can help make this search even faster and easier than ever before.
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