Know your credit. Check it periodically, maybe quarterly. Use a credit monitoring service. Learn what affects your credit negatively and positively.
Rules to live by:
1. Don’t fund your business with credit cards in any way. if you have to pay a major bill with a redit card, start worrying and have a plan to get out of it asap.
2. Try not to do business with family or friends. There’s always something that comes back to hurt a relationship.
3. Use a business plan. If you are deviating from the plan, determine why and determine if it’s acceptable or if you have to make a change. And do these things quickly.
4. Credit is tight right now. If you are looking for an SBA loan, make sure your business plan is buttoned up tightly. Get a financial advisor to look it over.
5. Ask yourself, do I trust my CPA? Do I trust everyone who’s handling my money? Make sure you’re double-checking orders, inventory, sales figures, cash registers - whereever money is stored or is flowing.
6. Don’t become chummy with your employees. Use mutual respect.
7. Don’t run your business as a charity. There will always be someone asking for a discount or a favor. When you’re a millionaire, then you can be a philanthropist.
I could go on.
One of the best pieces of advice I was given at startup was this:
People get themselves in trouble in business by short-cutting and cheating the system and doing things under the table.
Some say ‘cash is king’. But, you really have to know how to manage that cash income to avoid IRS audits. The IRS knows small businesses are taking cash and not reporting it. Use a financial advisor experienced with the IRS to help you manage it.
All so good points of advice will freepmail this to myself.
When I said cash on the barrel head I meant pay as you go business. I may not accept credit cards only debit cards.
Or cash. Or personal checks (possibly).
But will have a check clearing service - as I did in a small business I once was the office manager for.
I have over 15 year experience managing a small business so I know a little bit about this end of things.
Just never started one before.....or owned one.
Am following a dream/vision so who knows where it will go....only God knows. And He is my business partner.
So it’s all good.
(And by the way He is scrupulously honest and so am I)...so I get the part about having people I can trust handle the money - so that would be me to start.
I am taking some small business ownership / management courses at local tech college also.
And the SCORE idea - free help - is one I am also getting ready to do.
Appreciate ALL the advice!!!!!