|
|
| www.1001TopWords.com |
|
|
Dont Wait for Tax Time to Look at the Bottom Line
A curious thing happens to entrepreneurs in the spring of every year. They wake up one day and realize they had better figure out how much money they made last year so they can pay their taxes. But wait, shouldn't a business owner already KNOW how much money he or she made last year, last quarter, or last month? If you don't keep track of how much money you're making, you have no idea whether your business is successful or not. You can't tell how well your marketing is working. And I don't just mean you should know the amount of your total sales or gross revenue. You need to know what your net profit is. If you don't, there's no way you can know how to increase it. If you want your business to be successful, you need to make a financial plan and check it against the facts on a monthly basis, then take immediate action to correct any problems. Here are the steps you should take: Create a financial plan for your business. Estimate how much revenue you expect to bring in each month, and project what your expenses will be. If you need it, get help from business planning books, software, or an accountant. Review the plan monthly. Even if business owners take the time to prepare a financial plan with profit and loss projections, they often let it sit in a drawer. It's not enough to have a plan -- you have to review it regularly. Remember that lost profits can't be recovered. When entrepreneurs compare their projections to reality and find earnings too low or expenses too high, they often conclude, "I'll make it up later." The problem is that you really can't make it up later: every month profits are too low is a month that is gone forever. Make adjustments right away. If revenues are lower than expected, increase efforts in sales and marketing or look for ways to increase your rates. If overhead costs are too high, find ways to cut back. There are other businesses like yours around. What is their secret for operating profitably? Think before you spend. When considering any new business expense, including marketing and sales activities, evaluate the increased earnings you expect to bring in against its cost before you proceed to make a purchase. You can often increase your profitability simply by delaying expenses to a later month, quarter, or year. Don't be afraid to hire. Retailers and restaurateurs wouldn't consider operating without employees, but many service businesses limit themselves by being understaffed. Almost any business can benefit from hired (or contracted) help. Business owners can often better use their talents for generating revenue than for running errands and filing. Pay yourself a regular salary. If you are incorporated, you may already be doing this. If not, allocate an amount to owner's compensation on a monthly basis. Each month that your business meets its profitability goal, pay yourself the full amount. When you miss your target, dock your "pay" and when you exceed it, pay yourself a "bonus." Writing yourself a monthly paycheck will give you a strong incentive to keep your business profitable. Evaluate the success of your business based on profit, not revenue. It doesn't matter how many thousands of dollars you are bringing in each month if your expenses are almost as high, or higher. Many high-revenue businesses have gone under for this very reason -- don't be one of them. About The Author C.J. Hayden is the author of Get Clients NOW! Since 1992, C.J. has been teaching business owners and salespeople to make more money with less effort. She is a Master Certified Coach and leads workshops internationally. Read more of her articles or subscribe to her free newsletter at http://www.getclientsnow.com.
|
|
|
|
RELATED ARTICLES
Future Business Success - What Does Good Look Like? When you know you need to shift up a gear, in any area of your business (or your life for that matter), it's really important to have a vivid representation of what you are seeking.Some call these "Goals", others "Visions" and yet more describe it as a "Mission". But there is one focused way to ensure that your path is perfectly directed to where you want to get to.By asking the question:-"What does good look like?"...and applying that to where you are right now, you will easily see a path unfold.That path is about the steps you will take along the way to achieve your Good - your focal point.Struggling how to do this?Take a sheet of paper and describe the situation where you want it to be at a defined point in the future (be very specific with this). Answer the question, "What does good looks like?" using as many of your senses as you can muster.Writing it down:- Unleashes your creativity.Embeds it in your brain.andCreates a 'commitment' for the future.If you pin it up somewhere visible, you have every chance of making it happen.And once you have these great descriptions, you will find the first step, the second and onwards to make it come true. Beyond Management Coaching: When Things Are Getting Out of Control Leaders and Managers often ask us, 'What do you do when you have tried to coach and counsel an employee about a performance concern, and the employee has not responded? IT Expenditure - Why Businesses Spend Huge Amounts on Ineffective IT Investments Another IT White Elephant! Five Defining Characteristics of Great CEOs 1. Personal insight. Great CEOs are great leaders. They know themselves and what they stand for. They have been called on all their lives as problem solvers because others know them to be fair and impartial. People respect their opinions and look to them for guidance. Great CEOs are mature as people. They can suffer disappointment more gracefully than others and give others credit for their achievements. They don't come in the office door yelling for something they need. They aren't as concerned about titles or power structures as they are about the welfare of those who work at the company. They are trustworthy because they've always been honest with people and have earned that trust. They care about families, and they know that people are more important than dollars and express it in their actions every day. Focus and Shoot One of my earliest childhood memories is watching Lew Alcindor (Kareem Abdul-Jabbar) win his third Most Outstanding Player award while leading UCLA to its third straight NCAA title in 1969. Of course, March Madness? is now ingrained in our sports psyche. From the unveiling of the brackets in mid-March, to the playing of "One Shining Moment" celebrating a new national champion, the NCAA Division I Men's Basketball Championship captures our nation's attention. Tales From The Corporate Frontlines: Job Security in Todays Workplace This article, Job Security in Today's Workplace, is part of AlphaMeasure's compilation, Tales from the Corporate Frontlines. It tells the story of a manager who decides to look for ways to bolster the morale in his company when it crashes after an extensive layoff. Indiscretion Can Kill Your Business The quickest way to cancel out all the thought, work, energy, time and expense you've poured into promoting your business is with indiscretions. I'm not talking about giving your clients' confidential materials to their competitors, though that certainly will kill your business I'm talking about the indiscretions that leak out of your mouth, such as: Are Your Meetings Smart? Soon after I finished a brief seminar on how to accomplish more in less time every day, Roger shook my hand and said, "I can use what you said. But there is one thing you didn't talk about. It is something that drives me crazy. I can't get anything done because I'm in meetings all day long. We have gone overboard on meetings. We discuss practically everything as a team before making decisions." I asked Roger for his card and I called him later that afternoon with some ideas that could help get him and his team out of their meetings trap. How to get an Audiences Attention A trainer dryly discussing how to motivate people in an organization basically has just another "point-by-point" presentation. But suppose that he mounts the podium and begins to speak. Suddenly, a phone on the lectern rings. He ignores it at first, trying to continue. Finally he gives up, excuses himself and answers it. It is an engineer (off-stage voice) with a series of questions relating to the organization and the lecture topic. Although the presenter protests that this is "highly irregular," the offstage voice indicates that the issues are pressing and must be answered on the spot (while visual support flashes on the screen). Humor meaningful to the audience may be injected, such as, "Why aren't you at the meeting?" The lecture time is up, the presentation time has been used, and the presenter complains he "never got a chance to talk to the audience." But the audience members have received the information that the trainer had come to share with them, and in an attention-getting way. Productivity Through Positive Reinforcement Most people just want to be appreciated. If you're a manager, that's something to seriously think about as you set the tone for maximum productivity. Innovation Management ? Flexibility Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation. People Are Our Most Important Asset! How many times have you heard or uttered this phrase in the last 5 years or so. As a "reformed accountant" this phrase makes me cringe more than any other business euphemism being espoused today. Are You Using the Right Form of Energy? As we near the end of summer, here is a question I have for you, "Are you using the right form of energy to grow your business?" Are you having trouble growing your small business as fast as you want? Are you making all the right moves and still the business just inches forward? Read this article and see if you are using the right form of energy to grow your small business? Know the Source of Business One of the first questions we ask a prospect or new client is, "How did you get the business you have so far?" Some can answer exactly. Others aren't as certain. Performance Evaluations Can Be Beneficial THE PERFORMANCE REVIEW MEETING: It's a fact - most supervisors and employees have negative feelings toward performance appraisals and appraisal interviews. It's often necessary to shift people's thinking from the perception that the interview is a time of judgment to the perspective that supervisors can provide support and direction to employees who want to improve their productivity and be involved in the process. Most employees, after all, wish to work effectively. Few can tolerate the notion of working poorly and ineffectively. The appraisal is an important time when supervisors and employees can come together and talk about how to improve performance. Guidelines For Conducting A Good Meeting Okay, so you've figured out what kind of meeting is needed, you've planned well and you have all the right materials. How about the meeting itself? How can you be sure the meeting you've so carefully planned and prepared actually comes off as expected? Workplace Security Plan: Does Your Company Have One? Consultant's Perspective... Creativity and Innovation Management - Core Competencies and Competitive Advantage Following is a brief definition of core competencies and competitive advantage and their fit with creativity and innovation management. How to Help Your Company Become a World Class Company Most people think real change in an organization occurs as a result of top-level leadership. This isn't always the case. Learn to Assert Yourself Pinpoint your own blocks to assertiveness: fear of disapproval, need to please others, fear of being too masculine or feminine, or the dread of making mistakes.
|
| © Athifea Distribution LLC - 2013 |
