1. Keep good business records of your income, expenses, and assets for at least three years.
2. Conduct a break-even analysis to help determine if your business idea is likely to be profitable.
3. Prepare a cash flow statement to better understand when money flows in and out of your business. Use income statements to identify areas in your business that are over or under budget.
Review your balance sheet regularly to assess the strengths and weaknesses of your business. Look for creative, cost-effective ways to promote your business by creating a marketing strategy that is appealing to your target audience.
Managing your money wisely is the best way to make sure you and your family have financial security. Every business owner needs to understand how money comes in and goes out of his/her business.
Set measurable financial goals and establish plans to achieve them using money management. Develop a realistic spending plan. Create strategies to trim expenses and save money. For more information on learning business fundamentals go to Accion.Org.