Business Tips
Start-Up Stage: Have a cash reserve of six to nine months to cover your operating expenses. This money is important while your cash flow turns positive. Also, have this reserve for your personal expenses (mortgage, food, utilities, auto) because your business may not have the revenue to provide you with a salary at this phase. Consider part time employment outside your company to provide a source of income. Becoming established in the market place takes time. Give your business every opportunity to reach potential customers by being realistic and monitoring operating capital along with personal expenses.

Growth Stage: Never try to grow your business to make money. Yes, I know that sounds like heresy. However, if you get your financial numbers right, get your business structured properly, and spend your time appropriately (where you make your most money while delegating tasks or cutting jobs that will not be prosperous), life will immediately get better. If there are problem areas, growth will only magnify them. Also, unforeseen or improperly forecasted expenses will consume your cash flow. Hence, extra volume will not add up to extra income. Think business expansion once all of this is addressed.

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