| Most business owners subscribe to the thought that | | | | dollar. Every dollar must be accounted for in |
| you "must spend money to make money". This can | | | | advertising because the lifeline of your business |
| be true, but you also must know exactly where that | | | | depends on new and paying customers. Advertising is |
| money is going and the results it brings. A small | | | | the way to get the word out to the community or |
| business owner never has any money to waste. | | | | the internet. |
| Some ways that your business might waste money | | | | 5. A small business owner will sometimes be under |
| includes the following: | | | | self-induced stress to manage all aspects of the |
| 1. Manage your credit cards - If you have several | | | | business. Sometimes, leaving the control and decisions |
| cards, develop a computer program that will show | | | | to others that are qualified is the best way to |
| you the exact balances, due dates, and the interest | | | | manage the business. Releasing control may be hard |
| rate you are paying. Always be aware of other | | | | to do sometimes, but in a lot of businesses, money |
| solicitations that save you money and possibly | | | | can be wasted because the owner cannot possibly |
| change your balances over to a new company. If | | | | be as efficient as the person who has studied or is |
| you have any employee cards, see if you can set a | | | | knowledgeable about a particular field. For instance, if |
| limit on them. If not with the credit card company, | | | | a business owner does not know accounting, many |
| make sure that the employees know their limits. | | | | mistakes in reporting income and taxes can be made. |
| Manage your credit cards wisely and never, ever | | | | A qualified accountant can possibly save more than |
| miss a due date. | | | | the cost of their services in reduced taxes. |
| 2. Develop an annual plan so you know where you | | | | Take a hard look around your business and do not let |
| will spend money. This helps you in several ways. The | | | | anything be set in stone if saving money is the goal. |
| business person will be aware of what portion of the | | | | Challenge everything that will cost money and see |
| profits are going to advertising, towards incentives, | | | | what can be done to change the situation. Any |
| towards accounting and other internal expenses, etc. | | | | money that is saved, is money that can be put back |
| 3. Do not over-purchase any products or services for | | | | into the business either in profits or in growth. |
| a business. If you buy in bulk, the money is tied up | | | | A business owner wants their business to be |
| and a place must be provided to keep the extras | | | | successful and will work hard to sustain growth. A |
| and that might be costing money not needed to be | | | | business owner wants a way to continue making and |
| spent. | | | | growing money from a product or service that is |
| 4. Developing an advertising budget and knowing just | | | | interesting to them. After growing a business and |
| what resources to use is key to keeping money | | | | being smart with cash flow, many business owners |
| under control in a small business. You must advertise, | | | | will sell their businesses only to start another business. |
| but you also must get value for your money or you | | | | The reason is that business owners are independent |
| will soon be out of business. Keep a record of how | | | | types and challenges are rewarding when met and |
| much is spent, can you get payment terms, when is | | | | faced. Saving money through every day operations |
| the most efficient time to advertise your particular | | | | will help the business owner to meet their financial |
| product or service to get the most value for the | | | | and emotional goals. |