Wrong! We all have financial obligations, and we all must find a way to manage them. It is no different managing a company. You will be responsible for managing the company’s obligations, including the financial ones. How you perform here will no doubt be vital to your success.
Bills, Bills, Bills
Mortgage, car payments, insurance, college tuition… and the list of your personal expenses goes on. Your business also has expenses to pay, invoices to be sent, income to be tracked, and so on and so on. Simply put, accounts payable is what your company owes, and accounts receivable is what is owed to your company. You also have payroll and miscellaneous expenses. Before you can tackle any of this responsibility you need to get organized and set a budget. Watch for ways to save money but be cautious that saving a buck does not mean cutting corners. Quality should always be job one.
Neither a Borrower nor a Lender Be
Shakespeare had it right when he wrote that. Loans, investors, or advances may get you through tough times, but should only be taken as a last resort. If you can wait on a purchase to get a better rate, consider doing that. Sometimes unexpected expenses come in and adjustments need to be made. When circumstances arise that leave you no choice but to take money from outside sources, be sure you re-do your budget for paying it back, keeping in mind fees and interest which will most likely accrue.
Take Your Obligations Seriously
Follow the outlines in your contracts and keep your clients happy. Going outside of the parameters of your contract puts you at risk for a day in court, which means more time and money. Your staff works hard and deserves to be paid on time. Making excuses for delayed payroll is the quickest way to give them the green light to look elsewhere. Show them you value their efforts and they will remain satisfied and productive.
Stick to the Schedule
Do not discount the importance of a schedule. When you have a project, figure out how many hours you need to complete it and assign accordingly. This is a great opportunity to give part-time workers some hours and save unnecessary overtime. By using your schedule creatively, you can find ways to stay within budget.
Came in Under Budget?
Consider some form of employee appreciation such as bonuses or a party. Employees will appreciate being shown you value what they have contributed all year.
No Need to Keep Up with the Jones’
Keeping up with the latest and greatest may be impressive to those looking on, but really evaluate the necessity of such spending. Can you make do with what you have for another year or two? It is one thing if your product will suffer without some form of production update, it is another if you just want your team to have the latest gadget. When it does come time to upgrade, evaluate whether a larger up-front investment would be smarter or if an extended purchase would be. If it means increase in productivity or will enable your team to complete their tasks more efficiently, then by all means, consider the purchase.
Trash or Treasure?
Lastly, do not rush to discard waste. Not only is this costly, but you may find a future use for that waste that could make you money, or perhaps save you money in the long run.