Guest post by Business Make-over Expert, Ellen Rohr (learn more about Ellen at the end of this post)
Ellen Rohr has 22 Financial Tips for Business Owners. Financial Do’s and Don’ts to help you be successful in business…
Biz Philosopher Jim Rohn said, “It’s easy to do the things you need to do to be successful. It’s even easier not to do them.” Here’s a laundry list of the few things you can do that will help you create more profits and cash. And a few items that you should STOP doing.
•DO understand that you are in business for the MONEY.
•DON’T be ashamed about that.
•DO run a balance sheet, income statement and cash flow report every WEEK! Once a month is not going to cut it. You don’t want to look at the score only when the game is over.
•DON’T trust industry averages for budget and performance comparisons. If most businesses stink, and they do, what can you learn from industry averages?
•DO base your selling price on YOUR costs of doing business.
•DON’T pay any attention to what your competitors are charging. What do they know?
•DON’T forget what you really sell…time and know-how.
•DO remember that the know-how takes time to deliver.
•DO track billable hours. It’s the variable with the most impact on your financial position.
•DO create a line item in your budget for “customer satisfaction costs.” Allow 1-2% of total sales. Then, if you blow it with a customer, happily make it right and bite the bullet.
•DO understand that the proper selling price is the first and most important step in making more money for yourself and your employees.
•DON’T spend money on marketing, uniforms, new trucks, computer systems, and new employees until you have raised your prices to cover the new costs.
•DON’T call me if you are convinced you can’t raise prices in your neighborhood.
•DO call me if you want to discuss how to do it.
•DO learn about real estate. 8 out of 10 self-made millionaires have significant real estate investments.
•DON’T forget you live in the most fortunate time in history. This is a renaissance age. What are you waiting for?
•DON’T forget Warren Buffet’s rules for business. Rule #1: Never lose money. Rule #2: Never forget Rule #1.
•DO grow rich in a niche.
•DO something NO ONE else does…and charge a LOT of money for it.
•DO pay your employees much better than anyone else.
•DON’T forget that there is more than one way to make a living. Be willing to wrap up a losing business, or revamp it.
•DO more of what works and less of what doesn’t.
About the Author: Ellen Rohr started Bare Bones Biz– a venture capital and consulting company – in 1995, to help folks of all ages turn their big ideas into successful businesses. Rohr is a columnist for PHC News, Business Journals, and several trade magazines– providing “in the trenches” insight that business owners can relate to. As president of Benjamin Franklin, The Punctual Plumber, a home service company, Ellen helped the company grow from zero to $40 million in franchise sales, 47 locations, in less than 2 years.