Money Matters: Making the Most Out of Your Business Revenues

Just because business is doing really well and you have a waterfall of cash streaming into your corporate account does not mean that you can go on a spending spree. Even if you are buying for business purposes, it is not a good idea to wantonly spend your business revenues. You have to remember that business will not always be as profitable. You have to prepare for the rainy days, so to speak. You do not want to get swept off the scene when business conditions turn grim. You have to learn how to make the most out of your business revenues to ensure that you will still have enough to survive during lean periods.

business revenues

Part of your business revenues should go to your reserves. Determine how much you can reasonably take out from your revenues without affecting your allocation for your other expenses. Your reserves should be invested in safe instruments like government bonds and fixed income accounts. As you do not expect to touch your reserves in the near future, you want maximize its earning potential. Ideally, you should grow your reserves into an amount that will allow you to start over in a worst case scenario.

The rest of your business revenues can be reallocated into your operations. You cannot simply divide the revenues equally among your various operational areas. You have to look closely at your business organization and identify the most important areas that require funding. It would also be important to prioritize areas according to their financial requirements, their contribution to the company’s business goals, and their potential in bringing in more revenues. This kind of financial analysis and planning is not done overnight. You have to take the time to put revenue allocation as part of your business plans and forecasts. In the business world, how you spend money plays a big role in how you actually make more money.

Image Credit:
Michelle Meiklejohn – FreeDigitalPhotos.Net

Share Button

Taking the Big Leap – What It Takes to Be in the Big League

Many of the entrepreneurs who start small have dreams of making it big too. They might have limited working capital now, but with some hard work and maybe a little bit of luck, they hope to join the corporate giants sometime in the near or distant future. Some would say that this is wishful thinking. There really is no harm in aiming for the big league. If this is what you want to achieve, you simply have to be ready to take the big leap sooner rather than later.

Taking this challenge, however, should not be done haphazardly – ever heard of the saying that “you might be getting out of the fying pan and into the fire?” Small businessmen can actually lose everything they have when they go big prematurely. You have to set things up for success. This means knowing exactly what needs to be done for you to be able to compete with the big guys. You need to have a plan. You need to be patient about results. And, you need to recognize the signs that say it’s the best time for you to make the jump. The right planning, resources, market conditions, and timing are necessary in any business expansion endeavor.
proper business planning

Turning your small business into a big enterprise starts with a vision. Think about how far you are willing to take your business. You can even go as far as visualizing your dream enterprise. With this in mind, you can focus all your business planning and operations towards achieving this dream in the soonest possible time.

Proper business planning and action will lead you towards your vision. Give yourself a timeline to work on your dream. This timeline should be realistic. Find out what resources you need and how you can acquire these resources. Create an action plan that is doable. Commit to following your action plan. Even the best business plan could fail if you do not follow through.

Share Button