There seems to be a trend in my focus these days regarding business. It’s all about money. In the research I’ve done, I’ve found that how you manage money in your non-business life really runs in parallel with your business life. Here are few points of interest.
I’ve talked before about shiny ring syndrome. In our hunt to find out everything we can about everything we’re doing, we are pulled in all kinds of directions about what we may need and should have. First (and I’ll be shot for saying this) DO NOT buy something unless you can show that it will make you money…period. Talk is cheap – as they say – and a lot of information out there simply tells you what you should do, how it works, and lets you believe it is just that easy. It’s not. You have to invest time – sometimes a lot of time – to achieve the goal. It assumes you have a certain skill set, even though it says you don’t need it. It gives you false hope that you too can have this success. Have you hit the lottery lately? Probably not. This is no different from that.
In my experience, less than 5% of all the items I’ve purchased provided any financial return: most provided ZERO. (Oh…what I could have done with that money.) My best advise: if you think there is something you absolutely must have, hold off for 72 hours before buying it – and only buy it using money from your business.
I am the biggest offender – I admit – of not doing this. Boy has that come back to bite me in the b*tt! I see the revenue in my business account grow and then before I know it, I have almost no money. What the heck happened? Typically it’s because I bought things I didn’t need (i.e., non-return on investment itemsdiscussed, above) and I’ve just tossed away my money. I now have a built in email bank alert on my business account. When my money drops below a certain dollar amount, it boinks me on the head to let me know I’ve moved off the path (and into a ditch).
Maxing out your credit card(s) is not a good idea – unless you have a deal in the funnel that is guaranteed to pay off. If you have no money coming in, you’ll end up with debt that can potentially kill your business. You’re not a big corporation so you need to cover your expenses with other sources of funds – either your full-time job, spouse’s job, etc.
Home Equity Line
Check with your CPA but this *might* be a worthwhile source of funds for your business. The one downfall is that the value of homes has dropped substantially. My home has dropped by $50k in the past year (and my home is priced in the high 100’s). So, the amount of equity you may have available may be pretty slim.
How can I help you be successful today?