Let's talk about some finance basics.
One of the best thing you can do to grow your business is to not spend all the money. Many people treat their business as an ATM and that will always throttle down the growth of your business. The reason is, as you start to make a little more money you think "well I'm making more money" but you're not, your business is making more money.
If you want your business to work for you instead of you continuing to work for your business, you have to push some of that money back so that you can continue to have money set aside for the next person to put into a position. If you're by yourself or if you're with a part-timer or two none of you are running at a 100% capacity. That's obvious right? There’s way too many roles in a business for one full timer and a couple of part-times to actually be at 100% capacity and effectiveness, it's just not possible.
As you continue to grow the business and more money comes in, do not spend it, set aside a percentage of that money. You're going to have a set budget. Businesses are easy to have a budget. They're not personal, you don’t have to deal with wants, you only have to deal with needs. So, if you have a $2000 surplus at the end of the month, after you take an actual salary, then you have to decide how much of that surplus is going to be put away in savings. You should have a separate savings account where that money gets swiped.
I recommend that you swipe a percentage of that money every billing cycle (the first, the fifth, the tenth, the fifteenth, the twentieth, the twenty-fifth) into another account. Now can we do that for you? Absolutely not, we have no control over your bank or your banking. I know at RainMaker we can do all kinds of magic but we really can't do that for you. If you can't do it automatically that is okay, just do it manually on the third and the seventh and the ninth. In other words, log into your bank account and transfer a percentage. It's always easiest right after you have your biggest deposit days, that's why I say two days after because regularly your money is deposited around two days after the billing cycle. If the billing cycle ends on the first I'm going to guess that your money deposits on the third. That's when you're going to feel the least amount of pinch against taking a percentage and swiping it across.
As you continue this consistent practice you'e going to end up with extra money because the money continues to grow if you do your job right, if you monitor your numbers and you don't spend it all. That's going to allow you to put another person in a position, and that gets everybody closer to that 100% capacity and effectiveness... then you do it again.
The money continues to build because you're not just taking it like it's an ATM machine.
Financially that is the biggest principle you could really use to grow. Don’t treat your business as an ATM, save your money, invest it into the next team member. Biggest room for growth right there.
