5 Steps On How To Manage Finances In Your Fashion Business

Managing Money is not the easiest thing in the world,  I find a lot of people I interact with on a daily basis struggling to understand how the money from their business is being utilized. You’re a hard worker? yes!  You are making sales, yes! But money goes away so fast that you wonder if the business is any good. There’s no bad business, but when your money isn’t in check, your business would fail before you say the word ‘Entrepreneur’. Let’s help you fix that in this 5 simple steps:

  1. Make sure to pay yourself first. This doesn’t mean sucking up all the profit the moment you make it; start with 10% of the earnings. This is a good way to set aside money consistently and to test the profitability of your business.

    Have a Salary for yourself!

  2. Remain frugal. Even though you pay yourself, don’t get sucked up in the benefits of business ownership even if you can afford it. Set your salary as low as possible . What you save now, it will give you more flexibility in future lean months. Only spend on things that are absolutely necessary

    no matter how hard hard it gets, try to limit your expense and save

  3. Don’t spend prematurely. Don’t go big on business cards, sign writing, marketing materials, cars or inventory before any actual revenue comes in. This can create a cash flow blockage meaning your business is going to down and we don’t want that.

    Premature spending is no good, okay?

  4. Keep a separate business bank account. Mixing business money with your personal finances is a recipe for unexplained losses. Keeping your business’s money separate will make gauging profitability easier and help you to keep proper track of your expenses.

    Start Today. This is so important for your business

  5. Review your costs. Keep track of all of your small business expenses. These can add up quickly, but reviewing them allows you to fine-tune where your money goes.

    Everytime you spend on something, make sure to jot it down

     

So Yes beautiful people, these are all the small moves you should make to put your business finance 5 steps ahead, Contact us on fabrics.ng, let’s help you get further with your business

Tell your business friends to read this post and do comment if you found this read-up insightful.

Until next time, Stay Fancy!

 

Photo credits; pinterest.com, blackenterprise.com, inc.com, novebpw.org, madamenoire.com