Remember, all costs need to be included in your selling price. The customer pays for everything. In exchange, you give the customer your services. What a deal!
Ineffective meetings are meetings with no real agenda or purpose. This is also a big time waster. Provide an agenda for each meeting. Stay focused on the goals at hand.
Consider non-cash intensive payment options. Have you ever tried bartering? Make sure you are using business credit cards that award travel points to minimize cash expenditures on future business trips.
First of all, you need three basic account reports for your business. They are the cash flow examples, profit and loss report and balance sheet. The use of the balance sheet is to show you the worth of your business, your liabilities and your assets in the company for the whole year. You need profit and loss account to keep updated with how much you earn and how much you have spent. Basically, a report that has high profit and low loss is a sign of a growing business. However, if vice versa, you might be having troubles with your business.
This ratio can let you know how much of the stuff you have in your company is actually owned by someone else — your lender. Having this ratio climb can be a bad sign. It can happen as part of a major expansion, but it can also indicate that you’re getting in over your head.
DEBIT: A debit is used in Double-Entry accounting to increase an asset account. A debit will decrease a liability or an equity account. For every debit there is a credit.
Make no mistake about it, the only reason why franchisees are about twice as successful as independent start-ups, is that they have a clear and proven Business Plan. Their plan contains all the elements that you must know before you begin your journey on the road to business ownership.
Get your financial records for your business in order even if you don’t need a small business loan right now. Lenders of loans for small businesses will want to see your basic financial statements: accounts receivable, accounts payable, revenues and profits and loss statements. If you keep these records organized it won’t be a huge undertaking to get them together for the loan officer.