Sales Have you budgeted a sales forecast? Are you meeting your sales targets? If not, you may not be producing enough sales volume to pay for your overheads from the profit generated. Also, you have to build up enough money after costs to allow a surplus of cash for profit. If you haven’t, make some changes and make more sales.
Expenses Do you have a budget? If you are paying out more than your budget allows, you are on the short road to going broke. That’s why you have a budget! If followed it won’t let you spend more than the allowed amount. If you are spending too much, stop! Get off that roundabout, take control and stick to a budget.
Collections The #1 fastest way to go broke is by not sending your invoices out on time. Send them out early and collect them on time. Even if they are over due by one day remind your customers that you are not a bank and charge them an overdue fee. They buy, they pay and you collect. That’s how it works.
TIP: If you are too soft to do that get wise, outsource the job
BillsEven if you can afford to pay your bills by the due date, only the disillusioned pay their bills early or on time. Stretch paying them out as long as you can. It is the cheapest form of financing you can have. Think about it. If your bills are like mine $1,000,000 a month and I delay that for 21 days without penalty, I’ll earn another $50,000 a year just in interest.
TIP: If you’re too soft to do that! Get out of business. You’re no good to yourself or anyone.
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