WholeLife Matrix: Financial Viability – Profitability/Finances
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” — Colin Powel
Starting a new business is exciting, challenging, and a new learning opportunity and experience that’s unlike any other. But making the right decisions isn’t always easy. A new business can take up more time, resources and money than expected. In addition to having a great idea, you need to know what it will take to achieve your goals. It is possible to make money and have a successful business with careful planning and the right investment opportunity at the right time. We offer some tips in this article.
The business opportunity, whether it is selling goods or services, has to be viable to be worthwhile and profitable. Sometimes people want to invest their money into a fun and exciting business, but they need to first consider if others will want to spend money on the product or service and whether or not the business will be worth the time and effort.
Often, people try to start a business that requires a lot more time and money than they have. If it is your first time starting a business or you don’t have much money or time to invest, try to start something that will only require minimal startup cost, has simple operation requirements, minimal advertising requirements, and little or no staff – at least at the start.
As the business becomes more successful, you can gradually expand the operation and hire assistance. As some companies grow too rapidly, they may overspend on equipment, staff, and inventory. Do not hold too much inventory and, as you grown, be careful not to spend more than you actually need to.
It may not be necessary to buy expensive business software to start the business. You may be able to start with simple software like spreadsheets. Also, if you are not sure yet about what software or subscriptions you will want to use, choose monthly subscriptions instead of yearly. That way, you will be able to cancel the subscription if you do not like the product.
As your business grows and the needs of your business grows, you can invest in the things that become necessary for your business. But being careful with cost does not mean being cheap. Often, if you pick the cheapest product or service, you will not get great quality or value for your money. As they say, you get what you pay for, so you must balance quality with managing cost. If you want to sell a product, for example, make sure that you are getting the materials at both the best price and quality possible and that you will be able to mark up the price and make a good profit.
Have a good accounting system from the beginning to keep track of what you are spending and to determine where you might need to spend more or less. Keeping your finances organized will help to keep your business organized and on track.
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