Christopher Robinson |
Christopher Robinson is a renowned veteran in online and offline
marketing, advertising in the Washington D.C. metropolitan area. He is
currently part owner of Robinson & Associates Advertising Inc. Mr.
Robinson's internet marketing tools and ebooks website, http://www.hype-factor.com, and is the author of his free ebook "Effective Internet Marketing 2006", http://www.forlifeincome.com |
Christopher Robinson
has written 1 articles for SB Informer. |
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Successful Financial Planning For Your BusinessPlanning For Your Business Christopher Robinson
July 25, 2006
Financial planning is very important to your business. Lack of
money is one of the main reasons that new businesses fail. Even
established businesses can collapse due to poor financial management.
The golden rule in every business is never to allow your business to
run out of money.
Starting out: Make 2 bank accounts one for your regular household
funds and the other specifically for your business. You do not need to
make an actual business account you can make a personal account as this
will be cheaper and have less fees. Start with a checking account and
add a debit card for paying for things online.
Allocate a certain amount of money only for your business: decide
how much you can realistically spend on your business. Remember not to
starve your new enterprise but at the same time be sure that it will
not put undue strain on your household finances. When you keep your
business account separate you can keep a better control on this.
Make a budget plan: Decide where you will spend your money and how
much can be allocated for each area. Make a list of all the areas in
your business that will need funding. Prioritize these areas. For a new
business after the initial set up the major portion of your money will
be set aside for marketing your business. The quicker you can let your
potential customers know of your existence the sooner you can start to
make money.
It will generally take 3-6 months to make a profit and this will be
small. Therefore calculate that you will be funding your business
without seeing returns for at least that length of time. It often takes
at least a year to get established. Patience is the key to survival
here. For your first 6 months to a year reinvest any profits back into
the business. in this way you will be able to grow and develop your
business at a better pace.
Financial aid: resources: there are places to get information on small business loans if you need to take a loan http://www.smallbusinessloans.com offers help and places to get loans if you need.
Start small and work up: One of the biggest mistakes start up
business owners do is to spend too much money to begin with and find
they simply run out of money. Be patient and start small. Start with
small ads and promotions and work up to larger campaigns when you have
the funds. It may take a little longer but you will be less stressed
out and your business will grow at a steady rate.
Your business will depend on sound financial management. The
biggest mistake that most start up businesses do is not to keep good
records. You can invest in a program like Quicken to help you keep
records or even just keep records with Excel charts. However you do
this keep printable record so that you know exactly where and when
money has been spent. It is useful to keep records for Tax purposes so
there are no surprises when it is time to pay taxes.
Running a business is a very rewarding experience. It is possible
to run an online business very cost effectively. However it is critical
to your business growth to excise caution when spending and know where
every penny is going and coming from.
Copyright © 2006 Christopher Robinson
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