The basis of all money management tips we receive are to live within our means, cut costs and reduce expenses.
Agreed – for personal expenses. When it comes to running a business, we should keep this in mind but a strict following of this policy will stop your business growing and becoming more profitable.
As business owners, we have a time and capacity constraint ceiling that we can’t move past.
Stop saving money to the detriment of your company.
Now I do not advocate wasting money, so good governance of your spending is very important . It is important to know that what you are buying is adding value to your company .
My point on the above is – you need to spend money to make money.
A big area that small businesses struggle in is staffing their business correctly. These days we have so many options available to us that allows us to hire good experienced staff on a pro rata hourly basis.
Hiring staff , spending that money and giving yourself more time in your sales is going to put your business so much further ahead than the savings you will make by reducing costs.
Reach out to me – melanie@bookkeepingfirst.co.za – and I can send you a simple excel sheet where you can calculate the difference to your income.
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