Investments could also mean those things you purchase or put money in, in order to further your business. Most people take additional studies in order to get the credentials needed to help them advance in their chosen careers. Other people invest in machinery, gadgets and equipment in order to make their lives easier. Then, most businesses invest in people which make up their workforce — their much-needed manpower.
Here are three informal rules of thumb by which you can measure your investments and purchases:
- Does it add value to your business?
- Does it add value to your personal workflow? Does it save time and help you finish your work faster?
- Is it an expense that will pay itself off in the future? What is your estimated return on investment?
If what you pay for holds up well to inquiries like these, then it's safe to say that you've made a good investment and have put your money in a good place.
On the other hand, there may be things that we may not see as outright investments, but end up becoming "money well spent."
One interesting financial tool is the credit card. It's a great tool
when used wisely, but can also be a problem if used indiscriminately. If
you apply for business credit cards
as a way to organize your business' bills and expenses, you may find
that doing so can be easier and can actually be helpful for
compartmentalizing your finances.
In starting a business, one really does not need to have tens of
thousands of dollars set aside or obtained on a loan for capital.
Starting small is a good idea. As long as you manage your money well,
and weigh each purchase or each acquisition against whether or not they
add to the business, then you should be fine.
And if there is any advice we could leave you with, it would be these tips:
- Make sure your bills are paid.
- Make sure your accounting is in order.
- Make sure you know where your money has gone, is going and where it will go.
- Endeavor to create a product line that answers your target market's needs.
- Make sure that you please and listen to your customers.
One of the biggest pitfalls of a business would be sloppy financial monitoring or the lack of any monitoring altogether. You'll have less worries if you can have mechanisms in place to meticulously track your finances.
Finally, the other side of your business involves customer satisfaction. Once you have these matters down pat, there won't be anything stopping you.
Good luck on your money-making ventures!
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