So you’re ready to be brave and to implement your new ideas to help your business be remarkable and to stand apart from all the rest. But there is one problem, it’s going to cost money, and you don’t have the funds.
Biggest Errors in Business
One of the biggest errors we see in small business, is the failure to maintain adequate cash reserves.
The truth is it almost invariably starts right from the beginning.
Few businesses start with the adequate funding on the day they open their doors.
But we recognise this is the only way most small businesses can come into existence.
To get started we all do what we have to do. So we will just have to accept this fact and move on.
But unfortunately, most small business owners never rectify the situation, even after years in business.
Blood from a Stone
Most small business owners draw every last cent that they can out of their business, often while building up liabilities they aren’t even aware of, or even worse, they choose to ignore (eg. staff leave liabilities).
Therefore, it is little wonder most small businesses never achieve their potential and experience any real growth.
It is also little wonder many never achieve their end game of becoming a business their owners can sell for a multi-million dollar pay day.
The Inconvenient Truth
The truth is you absolutely must continually reinvest back in to your business.
Retaining cash in your business provides the oxygen it, and believe it or not you, need to stay healthy and to grow.
The obvious benefits of retaining cash include saving on interest and paying your suppliers on time (or better yet early) meaning better, faster service.
But some of the less obvious benefits include less stress on you as the owner, and therefore a clearer mind and better thinking and better decision making.
It also means you can ride out the difficult periods and most importantly, take advantage of the opportunities.
If It Was Easy, Everybody Would Be Doing It
I’m not suggesting for a moment that living on less is easy, but if you can make some sacrifices now, your future will be so much bigger and brighter because of it. And in a lot of cases the sacrifices don’t need to be that great.
Perhaps it just means holding off buying that fancy new car, or big new house.
A mistake so many new business owners get sucked into is thinking that they have made it because they now own their own business.
The truth is they have only just begun the journey to real financial success.
Watch out for Part 2 in coming weeks…