The clear signifier that you’re running a business well is that you are making money.  What this post will discuss will cover common financial pitfalls and ways of thinking that can leave the business losing money.

Don’t bet if you can’t cover the loss — so have reserves.
When we get emotionally caught up in the moment of planning to start a business, or actually starting one, the excitement and thrill about this new venture often gets ahead of strong, coolly detached reason. There’s a lot to be said about being able to block out time to cool down and consider your decisions rationally and objectively.

Every business, bar none, has gone through the experience of lacking enough money, or will experience  that lack eventually. The lack of money can even be tracked back to the earliest days of the enterprise. Turning money over and putting it back in to keep the business operational is not the same as making a profit. There are so many potential pitfalls that can influence how you can create money streams that 100% get-rich plans can’t be a given.

Before you starts a business you need to make sure that one, there are people who are prepared to buy your products (you have a viable, healthy market present) and two, there are enough people willing to do so to provide you a steady, sustainable market population to support you. You need enough customers to not only break even, but to turn a profit. Continue reading How To Protect Your Business’s Financial Health →