Money is a funny thing.
You can love it, you know you need it, sometimes there isn’t enough of it to go around, and sometimes you hate it.
Many people have the dream of being rich. Often, people go into business or choose a certain role to make their fortune. But it doesn’t always work out the way you had planned.
The cost of living continues to go up, while wages and salaries aren’t rising at quite the same rate. A 2019 survey by the Council of Trade Unions’ found that 70% of people surveyed felt they didn’t make enough money to keep up with rising living costs.
And even if you are running your own business and not relying on an employer’s wage, there are still many rising costs to factor in.
In a time when not all of us are benefitting from economic growth – how do you make the most of what you have?
Let’s take a look at some of the things you can do to be financially better off.
I Will Teach You To Be Rich By…
Use The Money You Have To Your Advantage
The first step is to work out your budget. Putting down in black and white exactly what money you have coming in and going out will give you a clear picture of your financial position. You can use your P&L Statements to help you work out your incomings and outgoings each month.
Once you have mapped out your incomings and outgoings, you will know how much is left over per week. Set a portion of the leftovers aside for tax, and also a portion for savings. It is always good practice to have a buffer to utilise in case you have an unexpected expense or quiet spot in your business.
If you have a significant amount of money left over once all the bills are paid, you might want to consider how you can invest it. Investing means buying into things that grow in value or generate income, and ultimately make you more money. The best way is to invest funds into growing your business. But, you can also choose to invest in property, shares, and bonds too.
Don’t Waste Money
The key to riches is not to waste money. That means spending your business surplus in wise ways. Some things are necessary to run a great business, but some are more of a vanity metric that you don’t need.
Be frugal where you can.
That doesn’t mean that you have to keep every penny in the bank as that is clearly not going to help you grow your income. It just means that you should spend your funds wisely.
With your personal spending, you need to find a balance between saving and still enjoying yourself. You can cut costs by buying weekly specials at the supermarket, buying in bulk, getting less takeout, and carpooling or using public transport.
Ramit Sethi, author of the bestselling book I Will Teach You To Be Rich says, “Frugality isn’t about cutting spending on everything. That approach wouldn’t last two days. Frugality, quite simply, is about choosing the things you love enough to spend extravagantly on – and then cutting the costs mercilessly on things you don’t love”.
Create A Steady Stream Of Sales
Once you have the budget set and your conscious spending in place, it is time to create the riches. That means generating a steady stream of sales.
Having a reliable base of loyal, repeat customers is essential for keeping things ticking over money-wise. But how do you create that loyal base of customers?
- The most important thing is delivering on promises and excellent customer service. Manage your client’s expectations, so that they know what to expect. Consider VIP programmes or incentives for repeat customers to make sure they always come back to your business. Depending on what goods or services you provide, some type of subscription or retainer service could create a steady workload and income.
- Get your pricing at the right level so that you earn what you are worth, yet remain competitive in the market. Pricing can be a hard thing to shift once established, so do some research before you create set rates.
- Remain visible amongst your ideal clients with a solid marketing plan. Remember that you can’t sell a secret. Attracting people to your business is more than running one advertisement too, you need a consistent approach to build momentum and create growth.
- Examine the areas of your business that are performing well to see if you can develop and build on them. Your accountant can help you to understand where your funds are coming from and if there are ways that you can improve.
Are you ready to be rich in your business? Then we are ready to help you get there.
If you are in need of accounting advice or assistance, Accountants Plus can provide small to medium-sized businesses with a customised service tailored to your specific needs.