How to Sustain Growth in an Uncertain World
Who said business would be easy?
If someone came to you today and told you that any idiot could run a business, I want you to turn around and run away as fast as you can. The truth is any idiot can start a business, but it takes dedication and desire to learn to keep that business going. This is a truth that I have learned the hard way.
Every time you put people into the means that a business depends on, your going to get uncertainty. People flake out, they make contrary decisions that destroy their lives and yours. It really sucks, but unless you can find a way to make money that doesn’t involve having people make decisions, your going to have to learn how to prepare for it.
Even automatic payments can stop due to no funds, think on that a bit.
The roller coaster of finances
I really enjoy roller coasters, you strap in and put your life in the hands of the makers, it’s a thrill that some love and some don’t. Business Revenue can be the same thing, sometimes you strap yourself in and put your hands in the customer’s decision process.
You will have your months where people are buying your product or service like crazy and then some months where you wonder what happened. In the good months, you start to go money crazy. You think you have it all together and you start making plans based on an uncertain future because right now, it looks bright.
Then you have those months where no one buys, the plans you made where based on a future that looked bright. This doesn’t look bright, in fact it looks like the dark side of the moon. You start to wonder perhaps you weren’t cut out to owning a business. Trust me, these thoughts have come into my head on several occasions.
Strengthening that financial saving muscle
This is not a muscle that you can see or even touch and you won’t know the fruits of it until something bad happens. Something bad always happens, your car gets towed, the government decides not to give you money back in taxes, a client makes bad decisions with their money and then has no money for your business.
This muscle is often overlooked, but is priceless when it comes to your business.
How to be profitable during unprofitable times
The idea is to have money that you have set aside during the good months so that when the bad months hit, you have money to draw on to keep your business going. You then have money to help until the good months come back because they will, just like when the bad come.
Don’t ever depend on your livelihood to back up your business, this is a disaster waiting to happen. I can’t hark on this enough, you are your most valuable employee, if you can’t survive, your business will not survive.
How to use percentages to your advantage
Start slow, if you already put money into a savings account, figure out what percentage that is of your income. Keep doing that for three months, then when the end of three month comes, bump that percentage up one percent.
Then do that for another three months, do you see what I’m getting at here? After time, your profit account goes up. Not drastically, but slowly over a period of time. Your profit account starts to actually look like a profit account.
Two of the things you can do with a profit account
With this account you can receive two things. The first is a confidence in your business because it looks like it’s doing good. Confidence is key when running your business. If a business is profitable from the beginning, it’s sure to continue that upward growth for as long as you want it to.
The Second thing you receive from this account is the backup funds that you are going to need to stay profitable during unprofitable times. Hence the name, PROFIT account.
There is so much more that you can do with your profit account like after 3 months, take 50% out and go celebrate. This Profit account is going to be very important to your business, so you better go make one. Do it now, I can wait.