A Business Needs to Make Money, So Stay Focused on
Your Costs and Income.
No matter how passionate you are about your business or how much value it provides to others, it needs to make money.
Otherwise, it’s just a hobby.
This means that you need to consider things like your funding, your costs and, of course, your income.
The first point is the simplest to address: taking on debt to start a business is no longer necessary.
For many, the cost of a laptop and a website is the only investment required, and some can make do with less than $100.
Photo by Lee
Consider Chelly Vitry who started a food tour guide business in Denver with just $28 in startup costs, and wound up making $60,000 per year.
If you do need funding but have trouble getting it from the bank, you can always consider more unconventional methods such as crowdfunding. Shannon Okey raised $10,000 on Kickstarter for her craft publishing business when the bank refused her loan application.
The second financial concern – your costs – need close attention. You probably don’t have a huge buffer of cash to tide you through low-income months, so keeping costs low is essential.
Only invest in things that will directly impact your sales.
A glitzy website, for example, may look nice but unless you know for a fact it will bring in new sales, you don’t need it.Photo by Format
Finally, to increase your income, be proactive about business development – don’t just fight fires as they occur.
Take time to think about developing your business and your offering.
What new products are you working on?
How can you make more sales?
Are there any long-standing problems that need fixing?
Make it a point to actively follow one or two key metrics, such as sales per day or average order prices, to keep focused on the lifeblood of your company.