Do you remember the time your business started making profit?
The time you realized all your hard work had finally paid off. We are here to remind you of this moment because there are key business management skills you need to maintain and never forget as your business flourishes.
1. Learn to listen to expert advice
The thing about owning your business is that you learn a lot and it becomes more difficult to listen to experts. This “know-it-all” syndrome can severely deter you from achieving your long-term business goals. Listen to the experts because they can see your business from a neutral perspective. They can tell you when something is working and when something needs to improve. Surround yourself with experts you trust. They may not always tell you what you want to hear, but they will advise you on what is best.
2. Separate your business finances and your personal finances.
Managing your finances properly is essential to keep things running smoothly. Make sure you are budgeting separately, saving separately and spending adequately. Make sure, you have a “salary” for yourself and pay yourself first. A huge common mistake is to reinvest all your earnings into the business you are running. Although, that might be great for a short-term investment strategy, it does not account for your personal financial well-being. You have to anticipate you will not be running your business forever, for this reason you need to have your own personal savings.
3. Learn the tax deductions that apply to you
Make sure you have a “Tax” expert look over your business finances and make sure you are paying as little taxes as required to. Most small businesses qualify for a 20% “Pass-through deduction. The deduction is generally available to eligible taxpayers whose 2018 taxable incomes fall below $315,000 for joint returns and $157,500 for other taxpayers. Additionally, some business might be able to claim their vehicles. If this is you, get some information about how to get Free Gap Insurance and take advantage of BSCU perks.
4. Stay Liquid and plan accordingly
Bad times happen to everyone, make sure you are prepared for them. Make sure you keep at least 6 months of liquid reserves at all times. Make sure you are also set with the proper protections and have a plan set up for emergency. Ask yourself the following; Do you have disability, health insurance and life insurance set up? If not, time to make adjustments.
We hope this helps!