RESOURCE PROPERTIES, Inc.

Real Estate Development • Leasing • Sales • Property Management

Print

MIKE'S TIPS FOR SMALL BUSINESS

I have an MBA and a CPA certificate and have been out in the business world now for over 40 years. And for more than 25 of those years, I've had my own real estate development and management company, watching our small business tenants grow, and sometimes fail. So...I've learned a few things that might be helpful as you start and run your own business:

Getting started

"It takes money to make money." Ever heard that one? Well, I heard it a lot when I was younger, and it's baloney! What it takes is a GOOD PLAN. 

Present one to the right investors or lenders and you will likely get more start-up money than you need...or should accept.  But make sure you have enough to provide a reasonable amount of Working Capital for the business, and to support yourself.


Gross Profit

There is nothing "Gross" about Profit. You need profit, over and above your own paycheck, to sustain your business.  At some point, you will have a setback, and you need to put some of your profit aside now to cover the future losses you may incur.


Windfalls

Another time, you'll make a huge sale, earn a big commission, or otherwise make a large windfall profit. Remind yourself you earned it, congratulate yourself, thank the Lord, and SPLURGE A LITTLE on some conspicuous consumption. It might not come again, but in the meantime, you will have rewarded yourself for hard work and provided an incentive to press on.
(And then SAVE the rest of your windfall!)


"Happiness is a Positive Cash Flow"

With it you can sleep at night. Without it you won't. It's that simple.

Your CPA will tell you how important it is to keep a proper set of books, tax records, etc. and it's all true. But CASH FLOW is the most important thing for you to keep up with.

At the beginning of each year, put together a spreadsheet with months across the top and a total for the year, and project out your expected monthly revenues and expenses. Figure how you're going to cover any shortfalls, and as the months go by, post the actual revenues and expenses, keeping an updated running projection for the year. Then refigure how you're going to meet those shortfalls.
Be conservative. "If you plan for the worst, it will only get better."

Good Luck!

Mike Duffy

~~~~~~~~~~~~~~~~~~~~
 We can help you start or grow your business in Columbia, SC
CALL US at (803) 735-1108 or CLICK BELOW to EMAIL

CONTACT