- Being money minded in your business. You understand how it works. Expenses are in front of you – rent, payroll, material, and supplies. You also have a specific amount of money. When you have paid all of your bills, profit is at that back of the line and there is no money for profit. There is an alternative available to you.
- Pay yourself and your business first. All of your expenses, without boundaries, will be eaten away. When you pre-plan your profit, you pay profit as your first expense. To change your cash flow, you can sell more and spend less. You have the option of setting different client expectations. Change your activities, but pay yourself and your business first.
- Set this money aside for six months. Pay yourself 10 percent and your company 10 percent. Nothing has more of an impact than paying yourself first. If you can’t pay your payroll, you need to make some cuts and keep your business sustainable. When you build your business organically rather than getting into debt, you can build on that in six months or so. This week open an account. Draw from this, put it into an account, and don’t touch it for six months.