Eating healthy, exercising, and drinking more water are the healthy habits of ordinary people. But you are an entrepreneur with your own set of good habits that help you grow your business and make more profit. Here are the most important ones.
Separate Personal and Business Money
You shouldn’t mix personal money and business money, which is necessary for its maintenance and development. And it works both ways: it isn’t advisable to constantly pay with a business card for family dinners at a restaurant or games described in a Tonybet casino review, but spending personal funds on coffee for the office and paying rent isn’t a good idea either.
When you mix personal money with business money, you provoke a mess of reports. You can’t figure out, for example, why net income has fallen: because the owner is spending a lot or because the sales department isn’t performing well. If you need an objective financial picture, you’ll have to sort through all the payments and figure out which purchases were personal and which were for the business.
What are the benefits of a habit? You’ll be able to keep track of which expenses are for the business and which are your personal expenses. This way, your company’s financial picture will be more objective and your decisions will be more accurate.
Where to start? Accept that you and the business don’t share a budget. And then it’s a matter of technique:
- Get a separate card for personal expenses, so you won’t be tempted to pay at the supermarket checkout with the business card.
- Set up a dividend withdrawal. Determine a comfortable percentage of net profit and frequency of payments, for example, 30% every quarter or 10% once a month.
- Set yourself a salary and get it each month.
Pay Yourself a Salary
In small companies, the business owner often acts as a director as well. It’s also common for the entrepreneur to not assign themselves a salary.
What’s the problem with this? The manager doesn’t receive a salary, but personal expenses do not go anywhere: you need to buy groceries, fill up the car, go on vacation. Since you don’t have any money of your own, you are tempted to pay for something with a corporate card. The result is a mess. And when you decide to leave the operational work and hire a separate employee to play the role of director, there will be difficulties: there is no such position in the company structure, and there is no money for salaries in the payroll.
What are the benefits of the habit? You will have your own money and order in the company’s accounts, as well as the possibility, if necessary, to leave the post of director and remain only the owner. From the non-obvious: you will be able to plan because while you didn’t have a salary, there was no understanding of how much you can spend and when.
Introduce the position of director or manager into the company structure and assign a fixed or piece rate of pay. The size of the salary is variable — focus on the amount you are willing to pay to the hired manager.
Automate Business Processes
We are sure that you have more important and useful things to do than manually counting net profit or writing down data about new clients in a notebook. Especially now that much of the routine can be automated.
What’s the problem? Entering data into a table, fixing the terms of the deal in a diary, making a list of things to do tomorrow (in the same diary) – all these things seem small, unimportant, but in combination they take up a lot of your time.
What is the benefit of this habit? Automating business processes will free up your time, which you can spend more productively. Does it make sense to spend an hour entering company expenses into a spreadsheet when you could be taking a little break, meeting with your team, or strategizing your company’s growth? Data about customers, finances, and company plans will be systematized in a particular author page rather than stored in random notebooks and 1001 spreadsheets.
Define a list of processes that can be automated and start implementing the relevant tools one by one. We don’t recommend automating everything at once — both you and your employees will need time to adapt. Transfer sales and transactions to CRM, use task trackers to manage tasks, and special financial accounting services to work with finances.
If you stick to these business habits, you will see results. You will see that the company has become stable, the money on the accounts has increased, and your worries about the fate of the company tomorrow, next week and in a month have vanished.