|Posted on June 23, 2015 at 4:39 AM|
Every Business Owner wants to build and acquire wealth for their Business. Every Business owner wants to grow and expand their Business, as well as ensuring that the Business has an intangible value (Goodwill). Are you Building Wealth for your Business? Do you have steps in place to building wealth for your Business? There are 5 Basic Rules to follow, when you want to build Wealth for your Business. These Rules have been proven to work, no matter your Company Size and they are as follows:
1) REDUCE YOUR EXPENSES : Every Business Owner must have control over their spending. The Key to reducing your Expense is to ask 2 Pertinent Questions:
a) How much do you NEED each month to run and maintain your Business?
b) How much do you ACTUALLY SPEND each month to run and maintain your Business?
As a Business Owner, In order to answer these Questions you will need to have a form of Accounting and Bookkeeping software, such as QuickBooks, to give you an accurate answer. QuickBooks helps to track your income, as well as your expenses, thereby giving you an average total cost for each of your expense for the month. It is advisable for every Business owner to get the QuickBooks software. This is the first step to building wealth for your Business.
2)EXPAND YOUR BUSINESS EARNING CAPABILITY: It is important for every Business Owner to ensure that there is a consistent supply of Cash flow into the Business. It is a fact, that every Business has opportunities to earn more. As a Business Owner, you always have to seek for various ways, that your Business can make money for you. There should be various ways to diversify and expand your Business. For instance, An Optometrist Business Owner can see patients and charge for his Services, as well as selling the Eye Wear Frames in his practice, so that his patients can select and buy their frames from the Practice. By this, the Practice makes money from the Services & Examination, as well as Selling of Eye wear Frames. Basically, Earning More is the Simplest Way to build wealth.
3)PAYING OFF YOUR BUSINESS DEBT: Business Debt can be incredibly useful, but most people are not aware of its dangers. Debt is a thief of Income. When a Business is in debt, every extra income, that the Business generates goes towards paying off the Debt, and this eludes the Business Owner into thinking that the Business is not making money. It is a fact, that Business Loans, Credit Cards and Mortgages are powerful financial tools, necessary for any Business to function, but by any means, Always endeavor to pay them off. It is advisable to have a Plan to pay off your Business debt. Remember, that Every Debt paid leaves room for your Business to save more and this is a strategy to amass wealth.
4) INVEST: The quickest ways build wealth is to Invest, therefore, it means that the quickest way to build Business Wealth is to put your Business Money into Investments that earn less than Inflation. The Long term returns from the U.S. Stock Market is right around 7% (Inflation Adjusted). Although, it is not unheard of, to get 12-15%. The real trick is Time in the market, to allow the returns to compound. Investing your Business Money does not require a fat stack of Bills, to get started. The Key to Investment is Instant Diversification and Instant Exposure to the returns of the market and exceptionally low costs.
5) GET A BOOKKEEPER/ ACCOUNTANT: Let's face it..... Most Business Owners mess up with keeping the Accounting Records for their Business. You can argue with me all you want, but we both know that every single year, when Tax Time rolls around, you run around to look for Bookkeepers/ Accountants. Get to know these facts:
As a matter of fact, Getting a Bookkeeper/ Accountant is the most important way for you to build up your Business Wealth. Make a Decision Today to get a Bookkeeper/ Accountant, who will help you stay on track all year long.
We hope that as a Business Owner, you can implement any and if possible, all of these rules and build wealth for your Business. If you do need help in implementing any of these, We will be happy to help you out. Give US a Call today on 202-422-4586. You will be glad you did.