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Growing Your Business – Why Separating Business and Personal Finances is Good

This article is not all about finances. Well, it’s partially about finances. More importantly, it’s about how to grow your business. Growing your business doesn’t just happen by magic. There’s no business growth fairy that takes away a balance sheet and leaves a bigger business under your pillow. It takes consistent, carefully investment to create your own success.

And that investment starts with something that you might not have considered: Separating your business and personal finances. Surprised? Here are the reasons.

First, you’ll want to separate your business and personal finances for tax purposes. If you keep them combined, you might not be eligible for certain deductions, but if you separate them, you may be entitled to deduct expenses for your home office and mileage allowance. Likewise, you may be responsible for paying certain taxes on your business that do not apply to your personal income. Separating your finances is the only way to ensure that you properly follow all tax laws and receive all advantages to which you are entitled by law. That can grow your business by clarifying your paperwork and possibly making more money available (because of more deductions) which you can reinvest in your business.

Another important reason for separating your finances is to get a loan or a grant so you can invest in your business. Separating your finances helps to establish a paper trail and helps you to create financial reports that demonstrate the business’ performance. If your finances are separated it will be much easier to determine which income and expenses belong to the business itself.

Third, separating your finances can help you decide how best to grow and develop the business as well. You will be able to see the areas in which the business excels as well as those areas in which it needs some extra help. You can generate targeted, accurate reports and financial statements that show at a glance how the business performs in various areas.

How Can I Separate My Business and Personal Finances?

The easiest way to separate your business and personal finances is to open a business bank account. If you use credit to make business-related purchases, apply for a card in the name of the business. Have all payments made to the business account, and use only those funds and the business credit card to make purchases.

How Do I Get Paid?
You have multiple options for paying yourself. Some business owners find it best to write themselves a set paycheck every week. If you are confident that the business will retain enough funds to pay your salary each time, this will streamline the process and make it easier to accurately pay your personal income taxes.

However, if your business is new or unstable, you may find it better to pass funds through the business account to your personal account. You might decide to retain just enough money in the business account to pay for expenses, and transfer everything that is left into your personal account. This is an ideal solution for those who have many personal expenses but few business expenses and earn wildly different sums on each contract.

Setting Up and Maintaining Bookkeeping and Accounting

Many business owners find themselves confused and overwhelmed by the paperwork that is involved in maintaining separate accounts. Consider hiring outside help. A Virtual Assistant company can set up and maintain your bookkeeping and accounting. Your VA can even handle payroll, writing your paycheck each week. You can maintain as much or as little control over the process as you desire. You can hire the VA for a set number of hours per week or per month, or simply retain his or her services on a per-project basis.

Ultimately, separating your business and personal finances can seem like a complicated task in the short term but in the long term it is an effective way to grow your business.

Small Business Success – The Top 10 Rules

1. Start with enough business capital.

Depending upon the kind of business you’re in, how big an investment it requires and how long it takes you to develop a positive cash flow, you need enough money to pay the bills until your business turns the corner. It may take longer than you think, so have a source in mind for a second round of financing, if you need it. Bear in mind that the number one reason new businesses fail is insufficient capital. 

2. Conserve your money.

Your cash is the life-blood of your business. Especially when your business is new, and you haven’t yet developed a lively cash flow, available dollars will mean the difference between success and failure. Don’t waste anything, not paper clips, not pencils, not anything at all. And when you consider a business purchase, ask yourself, “Will this help my business grow?” If the answer is yes, then ask, “What else might I buy with this money?” In other words, if you don’t need it, don’t buy it. And even if you do need it, make sure there isn’t something else you need more.

3. Sell what the market wants.

Is there really a profitable market for what you want to sell? You may think there’s a need for what you have because no one else is selling it, and perhaps you’re right. It’s far more likely, though, that it’s not being sold because no one wants to buy it. Be suspicious of a lack of competition. Even if you put together a top-flight business with a great marketing program, you simply can’t make people buy what they don’t want. If you think you can educate people to want your product, you’re wrong. The way to get your piece of the market is to sell to the market’s needs, not your own.

4. Provide good quality.

If you sell poor quality, you will forever be replacing your customer base, because people will seldom buy again from a business that sold them schlock the first time. Shabby work always comes back to haunt you, and it can take years to change your negative status in the marketplace. Good word of mouth is the best kind of advertising there is. In many businesses, new customers are primarily the result of the referrals from existing customers. A good reputation is your biggest asset. Be known for quality.

5. Give your small business your best shot.

When you start a small business, you take on all the responsibility and a huge number of tasks. There’s little room in an entrepreneur’s life for anything but his/her new business. To create a successful business, be prepared to put your heart and soul into the effort, to work long hours, and to confront and solve a myriad of problems. When the going gets tough, keep saying to yourself, “I will not be defeated. I will win.” It’s that kind of attitude that weathers difficult times, and builds successful companies. No, you don’t have to be superhuman to be an entrepreneur, but you do have to be strong. Being an entrepreneur isn’t for everyone.

6. Be prepared to manage.

Know enough about the basic aspects of the business you’re in, so you don’t make serious mistakes on the big, important issues. Sure, there are stories about 20-year-old college dropouts who step into the business world with no experience, and become instant billionaires. But those are rare exceptions. Most of us need some experience before we really know what we’re doing. The point is, don’t just jump in with no background in your field, or you could quickly find yourself over your head.

7. Hire good people.

Smart, efficient employees are solid gold. They make your business run smoothly. They make you look good. They make money for you. Employees who are lazy, stupid and/or troublesome can drive you crazy, and even destroy your business. Get the best people you can afford. Take your time and be exceptionally choosy when you hire. The two most important attributes to look for are enthusiasm, and strength of character.

8. Put the latest, best technology to work for you.

Today’s most advanced technology helps you work faster, more productively and more accurately. If you spend two days doing what a computer system could accomplish in fifteen minutes, you can bet it will be difficult to outperform your competitors. Investing in old technology is always a mistake. Its useful life is shorter because it will be obsolete sooner. And old technology is often incompatible with new add-ons you may need up the road.

9. Market aggressively.

Some wise business person once said, “Nothing happens until you sell something.” Without sales, there is no cash inflow, no profit, no business. For some new entrepreneurs marketing is an afterthought, something they have to do now that they have the rest of the business put together. In fact, the proper place for marketing is at the very center of your business. It’s the key function that must be the focus of everything and everyone in the company. As the boss, it is up to you to emphasize marketing, and to make sure everyone in the company understands you’re in business to sell and to make a profit.

10. Learn the things you don’t know.

Be honest with yourself, and admit there are things about running your small business you don’t know. Probably you don’t even know what you don’t know. If you stop learning, the world will pass you by. So be curious. Search out new perspectives, and expand your base of knowledge. You will never have an answer to every question, but you will continually become a more effective manager.

Success For Your Cleaning Business

Cleaning businesses are one of the emerging business ventures in the past months. More and more people have been putting up their own cleaning companies in the past months. This is seen to be the simplest business that you can ever put up which is why people are taking their chances and trying to make it big in this business. Although it is very easy to enter in this cleaning business, it is so hard to stay in it. With all the competition that you will have in this business, you need to make calculated moves in order to survive in this business.

Since a cleaning service is very important in the lives of the people, this is the best business that you can put up. With so many people living such busy lives, they need to have a hand or two when it comes to taking care of the cleaning jobs that they have. They can now have their homes cleaned with your business just around the corner. This is why you really need to make sure that you have the best cleaning service there is for the people.

This is why you really have to do your research first before you start in your business. You need to make sure that you are equipped with all the knowledge that you should have when it comes to a business before your enter it. It is too risky to just enter into cleaning without knowing a thing or two because this will work to the advantage of your competitors and you would now want this to happen to your business, right? So what are you waiting for? Do your research and gather all the knowledge that you can get when it comes to a cleaning business.

The first thing that you have to do is to identify the type of business that you would want to put up. There are so many cleaning businesses available out there. You may choose to have a general cleaning service, where you will just have to clean and fix up mess. This would usually include sweeping, vacuuming and dusting. There are cleaning businesses which do cater to specific cleaning job. There are carpet cleaning services, window cleaning and other cleaning jobs. Depending on which you think will work best, you may choose to have a cleaning business that you want.

The next thing that you have to keep in mind is to research on your competitors. This is very important since you need to know the weaknesses and the strengths of your competitors. Knowing these will now give you the advantage of having to conceptualize how you are going to run your business. You need to come up with a plan that will give you the best cleaning methods and at the same time, avoid the mistakes that you see that other cleaning businesses have. This is what sets a successful cleaning business. Of course, you need to give your potentials customers a reason why they should go for your business and not for other companies. The success of your business will lie in this so you need to make sure that you keep this in mind.

Great advertising is appreciated in a cleaning business. Since this is a service type of business, you need to make sure that you send the message to your potential customers that you are willing to help them out in their lives. Reaching out to them will be very much appreciated by the clients so make it a point to do a great job in it. Identifying your potential market will make it very easy for you to come up with effective marketing. Whether you would want to serve homes or offices, you may need to have an effective advertising strategy that you can use for your business. There are so many advertising strategies which you can employ. There are flyers, posters, websites, on line ads and print ads. For a cleaning business, you need to use a marketing strategy that will require you to use the minimum amount of money. Cheap but very effective advertising methods can really contribute to the success of your cleaning business. The most effective way to advertise your cleaning business is to use online ads. There are so many free websites out there which allow for free advertising of your business. Since there are so many people who are using the internet each day, you need to make sure that you use this for your advantage. Knowing that there are so many people who are using the internet each day, if you put up online ads, at least 20 people or more will see your ads each day. Ina matter of a few minutes, people will call you to inquire about your cleaning business.

Apart from these, you need to research on the things that you have to use for your cleaning business. There are certain cleaning methods that you should use when you have a cleaning business. The best way that you can clean is through green cleaning. This is the latest way that cleaning is done in present time, so you need to take advantage of this one. You need to make sure that you do your research when you want to use the most effective cleaning tools and cleaning solutions for your cleaning business.

There are so many things that you have to research when you want your cleaning business to be very successful. This does not mean that you have done your research, you can now go on and run your business and be guaranteed to be very successful in it. As you run your business, there are things which you are going to learn. There are things that will contribute to the success of your business, so be open to these things. There are so many things that you need to consider and once you become successful, do not be afraid to expand your cleaning business.