Running a Business: Keep track of all your costs




Track everything: Staff costs, overheads, interest on loans, overdraft (help you with any urgent, hopefully short-term working capital needs) fees, bad debt, matching purchase orders (when you send a buy request in your accounting system) with invoices from suppliers, excess inventory, etc.

 

A good cash-flow statement (money going out, money coming in), updated monthly is good start.

 

Better cash-flow statements also track slow suppliers, late payers, etc and helps you keep your feet on ground, avoiding being caught overpromising and underdelivering, all because you couldn't control the costs.

 

But, never price your product/service based on your costs alone.

 

Price them based on what the market usually pays/might pay (this one is tricky).

 

Thank you for reading.
This guide is from The Success Manual, which contains 200+ guides to succeeding in business, career and personal life.  Get the pdf ebook for $12 only.

 



In: Running a business