I would like to welcome my first guest blogger, Bob Swetz, with this very important topic.
How Do You Keep Your Online Home Biz Financially Afloat?
One reason most businesses fail, and I do mean most business, not just online businesses or home businesses is lack of money.
You
may be feeling the financial crunch in your online home business as you
are reading this article. Or, maybe it hasn't hit you yet. In any case,
it's time to start treating the finances of your business with the
respect they deserve.
Let's face it, I'm going to state the obvious. For ANY business to survive you must have more money coming in that going out.
So, how do you make sure this is the case with your home business?
First, when you are getting started, you have to make sure you have at least a little bit of money set aside to invest in some advertising and a program or 2 to advertise. These don't have to be large investments, but you will need money to invest. Next, find ad sites that allow you to earn commission on referrals EVEN IF YOU DO NOT UPGRADE. Once you start earning some commission, you can invest in advertising upgrades which gives you more advertising power.
Finally, set a Monthly Budget based on what you can afford to have going out each month even if you have nothing coming in. Once you begin earning some cash with your advertising and program commissions, you can adjust your budget accordingly. Don’t fall prey to folks trying to convince you to join every program that comes along. Many try to make you feel guilty if you don't join. This just wastes your precious financial resources.
To summarize:
- Make sure you have some cash to get started
- Start off with free ad sites that pay commissions to free members
- Don't swing for the fences right from the start
- Keep a budget and know what you can afford
- Use commissions to upgrade to increase your advertising power
- Adjust your budget as your situation changes
Ok, once you have that down. You need a system for keeping track of your finances because it is so easy for this to get away from you and before you know it, you may have nothing left to keep track of.
Keeping track of the ins and outs in your bank account helps you know how much you have to spend at any point in time and helps you make a quick decision (which is sometimes necessary) about whether to join that program or ad site. No money = no new program. Another benefit of tracking all of your income and especially expenses is that you make sure to get all the tax benefits of having your own business. In the US, if you don’t keep proper track, you could be in trouble.
There are a few simple ways to do your business “bookkeeping.” You will need to find which works best for you. Here are a couple suggestions:
- A spreadsheet program like Microsoft Excel or Google Sheets
- A program your bank offers with online banking
- Quicken is a very popular option, but this one will be a small investment
- Mint.com (I’m not a member, but I believe they have a free option)
- You could also just “Google” personal budget software and you will get some good alternatives to review
I hope this information helps to get you and keep you on the right financial track with your online home business.
To your success,
Bob Swetz
