First Step Marketing

Creative thought does not end once a good business opportunity has been identified. For as long as the business operates, it will be faced with problems and opportunities that force creative thinking. Unfortunately, it is very easy to get into a rut and grow complacent. If this happens, good opportunities may be missed and many setbacks, which could have been avoided with some creative problem solving, could occur. Read the rest of this entry »

Cash Flow Statement

Cash flow is the lifeblood of a business, since it symbolizes the steady movement of cash in and out of a company. With a cash flow statement, you’ll be able to keep tabs on when you expect to receive revenue, or money owed you by customers, and then manage this money so it is available when you need it to pay your bills. Getting the numbers down in writing will help you to figure which months you should stockpile extra cash, perhaps by postponing that renovation project you had planned, and which months you’ll have enough revenue flowing into your checking account to reschedule it. Or you can plan to hold a special sale for the months when you believe you’ll have more money going out than coming in; the discount you provide to your customers is worth it if your cash flow is positive instead of negative. Read the rest of this entry »

In the course of running your business, you will have to deal with not one but two budgets: one for your business and one for yourself.

A business budget is also referred to as an operating budget, and it differs from the budget you developed for your start-up costs for several reasons: After operating your business for even a short time, you will have a much better idea of where the money goes, as well as what comes in. You’ll also have some sense of when the money tends to arrive in your bank account, so you’ll also know when you can expect to be able to pay your own bills. Read the rest of this entry »

Hiring a staff of employees, or even deciding whether to take on just one in the first place, can be one of the most difficult decisions a new entrepreneur can make.

Labor (and all the associated costs: insurance, additional equipment, supplies) and employer- paid taxes turn the employment section of your budget into your single largest expenditure. Read the rest of this entry »

Even if you hated math in high school, keeping a good financial record of every one of your business transactions—whether it’s checks received or cash receipts for highway tolls paid while traveling on business—is a basic necessity. After all, every entrepreneur wants to know how much money her business is generating both before and after expenses, to see what all of her hard work is worth. Read the rest of this entry »