Paul Daniel Staff asked 3 years ago
I currently run my business which is a year old now, currently sales have increased compared to when I start, I keep proper record of income and expenditure but my personal needs makes me spend as much as I earn which I know might be risky to my business.
How do I go through this, for now I can’t employ a cashier.
Edidiong Abraham Staff answered 3 years ago
Hi Paul,
There are alot of things we need to sacrifice for our businesses to thrive. Do only those things that are important. When you’re running a business some of your profit ought to go into expansion so you don’t remain stagnant in my opinion. If you can’t employ a cashier yet, learn the how to handle the book-keeping and finances yourself. Thankfully there are so many platforms to learn even for free now.
Adebukola Abadariki Staff answered 3 years ago
Hello Paul, from what I have read here, keeping records does not seem like the major issue. You seem to be spending money from your business on your personal needs. Might I advice that you work with a pre-determined percentage of your profit as your “salary”. For example 10% of your profit can be what goes into your pocket monthly, 65% goes back into the business for expansion and the remaining 25% as your reserves. You could probably hand the reserve over to financial institutions (or someone) who you trust enough and whom you cannot strong arm into giving you back until there is a dire business need for it.
Please note that you don’t have to use this figures exactly, you can work with figures you’re more comfortable with. However, whatever you decide, maintain the discipline to follow through.
As for your needs. You could create a scale of preference and attend to the most pressing needs with the resources you have at your disposal. Along the line, you might discover that you did not even not money to sort somethings out, because you have found an innovative solutions to that need.