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How to Manage Your Business Money the Smart Way
Many people start a business full of excitement, but after some time, they can’t explain where all the money went. The truth is, a business doesn’t only fail because sales are low — it can also fail because of poor money management. If you want your business to grow and last long, you must learn how to handle your money in a smart way.
1. Separate Your Business Money from Personal Money: 💼
This is the first and most important rule. Don’t mix your business money with your personal spending. Have a separate bank account for your business, even if it’s a small account. When you mix both, you’ll never truly know if your business is growing or not. But when you separate them, you’ll clearly see how much your business makes and spends.
2. Know All Your Expenses:🧾
Many business owners only focus on how much they sell but forget how much they spend. You must know every expense — even the small ones like transport, packaging, or mobile data. Write everything down or record it on your phone. When you know your real expenses, you’ll know your true profit and avoid overspending.
3. Pay Yourself a Salary: 👩🏽💼
Don’t take money from your business anytime you need something. That’s how many people kill their own business. Decide on a small amount you’ll pay yourself weekly or monthly. That helps you control your spending and gives your business money to keep running. Treat your business like a real company — even if it’s still small.
4. Save a Part of Every Sale: 💰
Each time you make a sale, keep a small part aside — it can be 5% or 10%. Don’t touch that money except for business growth. That money can help you restock, advertise, or solve problems when things are slow. A business without savings can easily fall when hard times come.
5. Track Your Profit, Not Just Your Sales:📊
Selling a lot doesn’t always mean you’re making profit. You might sell ₦100,000 worth of products but spend ₦90,000 on running the business — that means your profit is only ₦10,000. Always calculate your real profit so you’ll know if your price is right or if you need to reduce your costs.
6. Reinvest in Your Business: 🔁
When you make profit, don’t rush to spend it all. Use part of it to grow your business. You can buy better tools, improve your packaging, or promote your product online. The more you invest in your business, the stronger it becomes. Small improvements every month can lead to big success over time.
7. Keep a Daily Record:📘
Make it a habit to write down what comes in and what goes out every day. It doesn’t have to be fancy — a simple notebook or note app is enough. These records will help you understand how your business is doing and make it easier to plan ahead.
Finally, Managing your business money is not about being strict, it’s about being wise. Money that is not well managed will soon disappear. But when you plan, save, and reinvest, your business will grow stronger. Don’t eat all your profit — let your business breathe and grow. Remember, a successful business is not built by how much you make, but by how well you manage what you make.
Stracart and Emmanuel Adebayo3 Comments-
Thanks -
This is thoughtful
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Ik
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