Spend Your Profit on Your Business


By Lisa Page

Businesses go under or go bankrupt, because of poor management and poor mapped out goals. You need to have a clear set of daily goals. Management should be in charge of making sure each set of goals is achieved. If management falls behind, so does the business.

Another thing I see; is when a business first starts out and the owner is paying them self a huge chunk of change, but puts nothing back in to the business. You have to put money back in to the business when you first start out. Most of your profit for the first few months should go in to the business. Pay your business expenses and employees, if any. Then put the rest of the money back in to the business. It is called growth and expanding. You may see no need to put money in to your business. But you do need to put money in to any business to keep it going properly.

I usually put about 20-50 percent of the profit back in to the business for the first 6 months. After six months, you can relax and put 20-30 percent in to the business. Everyone is different, because all businesses are different. Set out your spending and profit margins on a checklist. Figure out how much you are spending for business expenses. The rest should be used to benefit the business, if you can help it. Sometimes, needed circumstances call to dump money in to the business.

If you put a percentage of your weekly profits in to a seperate account, you can manage it a lot easier. Don't touch this money, except for business expansion. You may want that new computer desk. But you probably need the computer more. Without the computer to work, you don't have a use for a new computer desk. Get it? Buy the things your business needs at first. When you save all that profit, you will be able to buy the things you want, later down the line. You can do lots for your business, if you don't pay yourself for a few months.

Take that pay cut now. Make up for it later. Your business will thank you. And you will thank yourself later. Get in to a regular habit of putting a certain percentage of your profit in to another account every week. You may want to purchase a new web domain or host, whatever the case may be. If you have money put away, you can use it. Obviously a web domain or host is much needed if you are working online. Always put your business first. If you keep this in mind, your business will prosper. Don't go bankrupt before you get started.

I hate seeing businesses with so much potential get ruined by greedy leaders. The people in charge should not be greedy when they start a new business project. The most important thing to remember is; don't take needed money away from your business. If your dream mean so much to you; Why take away from dream. Feed your dream!

Learn how to start your own home business by following this amazing step-by-step guide. Want to be an Ebay Powerseller? This guide will help you. Check out my Daily Blog.


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 403, exiting

More Accounting Information:

Related Articles

Keep On Growing With Systematic Small Business Accounting
Money market is at boom these days and according to market experts it is the best time to step in to a new business. People who are willing to be a part of this huge money market by establishing their business are moving ahead as there are brighter future prospects.
The Importance Of Proper Bookkeeping/Accounting To Small Business Owners
Proper bookkeeping is important to sustaining and expanding a business. Without it, you run the risk of hitting cash flow crunches, wasting money, and missing out on opportunities to expand. When you are devising or revising your bookkeeping routine, remember that the purpose of bookkeeping is to help you manage your business and to enable tax agencies to evaluate your business activity.
Little Known Secrets Why Most High School Graduates Have Lack Of Accounting Skills!
The skills that an accountant needs are, the ability to synthesize, analytical ability, creative ability, computer competency, ethical behavior, critical thinking and personal demeanor. The accounting skills are important in all aspects because it fits to all job specialties.
What is an Online Accountant
This is a short article about using the services of an online accountant. It explores how working online with your Accountant can offer better value for money and greater efficiency for both parties
Accounting: Options For The Small Business
The key advantage of going it alone is that as a company leader, you have to have a good understanding of how the business is journeying economically. This is tremendously essential for small business possessors, as poor economical records is frequently a substantial cause why small business fail. In addition, although most possessors may try to avoid the economical activities of its business, it is significant to have a realizing of how to manage the finances of a business well.
Accountant Careers - How Not to Succeed in Accounting
A career in accounting is one of the most promising and high paying in today's world that is ruled by money. Accounting jobs are a part of all businesses and organizations.
Tips To Conserve Accounting Fees
Like several small business owners, a person engage a Chartered Accountant and probably view the accounting fee as "normal". It is necessary so that you can consider what you're acquiring your money can buy. Just before doing your research to reduce the accounting fees, compare the worthiness that you're obtaining out of your accountant.
Top 5 Accounting Software for Small Enterprise
Every small business needs to know where the cash went - and is going. These top selling accounting software program packages simplify your small business accounting duties, and supply all the studies and tools you want to successfully use your financial data. Simply Accounting and QuickBooks are available for Windows, NT, and Mac platforms
Difference Between ERP System And Accounting Software
Every big organization is looking for including ERP software. Since long all have been using accounting software and it is essential to know the difference between ERP and accounting software.
Surprise! Accounting is the Hot New Major
There was a time when accounting was the boring college major that many people regretted signing up for. A constant barrage of numbers, statistics and spreadsheets was none too interesting.
Top 7 Strategies for Writing Accounting Procedures
Part Two of Cash to Cash Cycle Series
Understanding Depreciation: It May Be More Simple Than You Think
Depreciation is defined as a portion of the cost that reflects the use of a fixed asset during an accounting period. A fixed asset is an item that has a useful life of over one year. An accounting period is usually a month, quarter, six months or one year.
Accounting Degree Rewards for Organizations and Also Firms
Now that you have completed college you are interested in accounting degree work. In theory, you shouldn't must a lot problems in this search. There are many unorganized organizations out there that could work with a expert accountant. An avowed community accountant will just that: keeps track of monetary dealings and information in the industry.
Work Within Forensic Accounting
The particular forensic accountant calculates damage helping inside settling conflicts just before these people attain the courtroom. When the challenge should go so far as the court docket, the particular forensic accountant may also become a professional see. Within an study, they evaluate the scenario and are available track of feasible course of action, assist in the actual restoration of resources as well as work with private investigators as well as experts.
Accountant — The Way to Choose Them
An accountant is a professional who keeps track of the financial records of a business or an individual. There are a number of individuals and businesses who use the services of an accountant all year round.