Pay yourself a small salary and settle your overheads. Profit is not for spending, it's for investing in people, equipment and space so your company can grow in the future.
If you don't do this, when you need to expand, you will either get yourself in debt, or hand pieces of your company (and control) over to someone who has the cash.
Having extra money in the bank so you can grow/invest means that you have to charge more than you need to survive. Or you're living beyond your means and you need to cut your expenses.
If all this is not happening, there's something wrong with your business model.
If you invest, it's always a gamble. And like gambling, whatever you put on the table, you should be willing to lose.
Most importantly, a sustainable and profitable business (that people want to throw money at) is a business that still makes money for you when you're on holiday.
This is a great article (I have a TIME addiction, sorry) on companies that will not have to let people go during the recession. Basically most of them have alot of cash and little or no debt.
Posts
No comments:
Post a Comment