How To Be Positive When Business is Slow

Starting and growing a business is one of the most challenging and fulfilling experiences. But make no mistake, it can also be overwhelming and frustrating at times. Especially when you are going through one of those slow periods or feel that your business is not going the way you envisioned it to be.So how do you keep going and attain the success you want so badly? Keep a positive mindset. I know it’s easier said than done but here are a few tips that will help you regain positivity:

1. Positive Affirmation

how to be positive when business is slowTo some it may sound very new age, but positive affirmations can be very powerful and I have got through many difficult times through this technique. e.g if you are having second thoughts about whether your business will be successful, you can repeat this simple mantra ” I will steer my business to a successful direction”. Not everything works for everybody, so a simple way to find positive affirmations is to write down your biggest fears and insecurities and turn them into affirmations. When you repeat the affirmations, you start to truly believe them and that really helps you to get more focused on your goals.

2. Delete negativity

We all have negative thoughts and they almost always prevent us from working towards and achieving our goal. So the best way to deal with negativity is to find the triggers for negativity and avoid them. Also indulging in some of your favorite activities like listening to music, going for a refreshing walk or even watching a funny YouTube video can put you in a better and more positive mood.

Another major cause of negativity is dealing with people who are negative, discouraging and in general not enthusiastic towards your endeavor. So make sure that you surround yourself with positive, happy and successful people who motivate and energize you. Be happy and surround yourself with happy people with positive outlook.

3. Find inspiration

When you first start out building a business, you are inspired. But when you get down to the actual business, the daily grind may make you lose that inspiration. But worry not, there are many ways of finding that inspiration again. You can read success stories of other entrepreneurs who went through a hard time initially or you can motivate yourself through positive quotes. Also make it a point to stop fearing failure and look forward to success. Another tip is to create a nice motivational board on Pinterest and add something to it daily. It works for me and I am sure it will work for you too!

4. Take a break

Sometimes we can be so engulfed with our projects that we forget to switch off. Especially in this digital age, we are always on the go and “connected”. Though it may seem to be a good idea initially, in the long run it’s counterproductive. So take a break, indulge in your favorite pastime, go for a weekend trip or just relax with your loved ones without thinking about work. You will be surprised how effective this break can be and you will find a renewed passion and energy once you are back to work.

All the above tips are tried and tested by me and help me keep a positive attitude in running and growing my business. I am sure they will be helpful to you too. Got some tips of your own? Would love to hear them!

How to Create a WordPress Website

As promised in my previous post on How to Start an Online Business, here is my WordPress Tutorial for all non-technical people who want to create a free website all by themselves. WordPress is a dynamic and powerful website creation tool which allows even people who have no coding knowledge to create a website all by themselves. What makes WordPress indispensable are the great features like WYSIWYG Editor which allows content input to the website without coding or technicalities, flexibility of media manager, a huge collection of plugins and a very convenient installation process.

Creating a website in WordPress is an incredibly easy fare, so let’s take a look at some basic steps for creating a WordPress Website:

1.    Understand and Plan:

Creating a WordPress WebsiteIt is tempting to jump right into the exciting endeavor of creating a website and go with the flow of upcoming challenges but I advise you to familiarize with the system and devise a plan first. Spend some time understanding how WordPress works and how it can be used best of your business. Make a crystal clear SEO and content writing plan before venturing into website creation. Book a domain from Godaddy.com and select a hosting provider.

2.    Install WordPress:

WordPress installation requires a web-hosting account through which you can install WordPress. It seems very technical but it is actually a very simple procedure. All you need is to choose a good hosting provider like Bluehost.com, Hostgator.com or Godaddy.com and login on your cPanel to install WordPress . Most of these good hosting service providers provide one click installation which is really helpful for non-techies.

3.    Set up Website and layout:

After successful installation, now is the time to set up your website and layout. WordPress provides lots of pre-designed themes with graphics, colors and text styles to choose from, with lots of customization options. If you want a more distinctive look, you can buy a professionally designed WordPress theme. Administration panel, settings, appearances, profile and many other options are also provided in your WordPress account to set up and get the website working in matters of minutes.

4.    Add content:

Content in WordPress website is added as posts and pages. Posts are displayed on the blog page while static pages like “About Us” or “Product Page” can also be additionally added. Each post or page provides media managers for adding graphic, audio and video media.

5.    Add Plugins and Widgets:

WordPress provides a wide range of plugins and widgets to extend the functionality of your website according to your requirements. Standard Plugins include contact forms, image galleries, image sliders etc while domain specific plugins include currency calculators or body mass index calculators etc. Some of the must-have plugins for making your website more productive are Feedburner, Google Analytics, Akismet, SEO plugin, Sitemap and Contact Form plugins.

6.    Monetize your website:

Advertising is the quickest way to start making money on your website. Apart from banner and advertisement plugins, you can make use of Google Adsense program to monetize your website.

7.    Drive traffic through Social Media:

The best way to drive traffic to your website is by social media integration which can be simply done by adding Facebook , Twitter and other Social Media buttons on your website.

8.    Maintain and administer your website:

It is important to keep a check on spam comments, unused plugins and data backup. If you think the task is overwhelming for you, you can also create users (and hire people) to maintain your website and perform administrative tasks.

Follow these simple steps and voila! You have created a new functional website all by yourself.  Let me know if you have any questions regarding any of the steps.

Top 5 Online Work at Home Ideas

Working from the comforts of home is a new facet of this globalized world.  The idea of working from home in your pajamas at hours that suit you sure seems appealing. There is an exciting world out there which can be reached from a single click. I am sure many of you would have Googled work from home jobs and 99% of the results invariably are some sort of scams where they ask you to join a program for a small fee and promise you unbelievable sums of money. But that’s what they are –scams. Due to these scammers, many people think that working from home online is not feasible. But in reality there are many online home based jobs available.

work at home ideasWorking online from home is in many ways similar to working in the real world. You have to put in effort and you get paid for your skills and output. It’s not a get rich quick scheme. But the beauty of working from home is that you have the flexibility and freedom to choose your working hours, your projects and your price as well as leave for that vacation when you fancy. Even if you are not a tech expert, you can earn a good living working online. All you need is right attitude and the willingness to put in time and effort.

First requirement for a successful online work is to find out what skills you have and how you can utilize them online. Here I have enlisted top 5 successful online work at home ideas that work and that cover a variety of skills sets. I am sure you will find something that matches your skill sets too.

1.      Copywriting:

If you have the talent to play with words, you can get a host of online writing jobs. The world of words needs your skills in advertisement writing, website copy writing, brochures, blog posts, press releases, SEO articles, newspaper articles, eBooks and a lot more. The beauty of this task is that it doesn’t require any technical skills other than your command over the language you are writing and a good writing style. A computer and internet connection are all you need for earning money from any corner of the world!

2.      Virtual Assistant:

If multi-tasking and attention to detail is your thing, you are totally apt for virtual assistant jobs. Be it big companies or small businesses, there is a dire need of virtual assistants who can provide administrative and support skills to the endless to-do-list of the contractor. The tasks performed by these virtual assistants commonly include customer service, internet research, data entry, social media maintenance and this list is endless. You only need a working internet connection and viola! You are off to become a star virtual assistant.

3.      Graphic Designer:

Graphic designers are needed for all types of websites, advertisements and blogs. If you know Illustrator and Photoshop well enough and your aesthetic sense is unmatched, you should gear up for some serious graphic designing. It only requires designing skills, a PC, your design software and an internet connection to become a successful highly paid graphic designer.

4.      Book Keeping:

Are you the record keeper of your family? If so, why not take this skill to the next level. Book keepers are a need of every entrepreneur to keep their cash flow well in check. Excel or simple spreadsheets will do the task while you just keep the count of profits, spending and cash flow.

5.      Sell products:

You can sell your products right through the web by means of a website, a blog or simply by opening accounts on eBay. Market yourself through social media and if your products are worth it, you will get a flock of buyers from corners of the world! Sell you products and make it big!

Choose a field best suited to your skills and temperament and get set to achieve the dream of earning right from the comfort of your own home!

 

How to Start an Online Business

Unlike starting a business in the real world, starting an online business does not require a huge capital. In fact, if you have the right business idea and are willing to devote time and work hard, you can start an online business for free or with a very little investment.

But like any business venture, there should be clear plan of action of for starting your online business. I have listed below the steps that will help you convert your online business idea to a full-fledged success story:

1. Find a niche market:

how to start an online businessFor an online business it’s the market that counts instead of the product. The foremost requirement is to determine which products and services people are ready to buy through online sources. For this purpose, you will need to search the existing markets and activities of online users thoroughly. Take into account the things people discuss on forums, find out which keywords are people searching and finally check out the websites of your potential competitors. Finalize a product or service for which there is already a market.

2. Give your business a face- Create a website:

Once you have decided the product or service that you are going to market, you need a website. Now getting a website created may be very daunting for some people as the general perception is that you need to spend a lot of money for a decent website. But with so many options available nowadays, you can easily create a site for very little money or even for free (minus the domain and hosting costs). Creating a website involves 3 basic steps – Registering a domain, choosing a webhost, designing the website.

Register a Domain Name:

You can easily register a domain name from sites like Godaddy.com. Make sure that the domain name represents your business niche. Having an exact keyword match domain used to be great till recently but due to the recent algorithm changes it is no longer relevant. But still it is a good idea to include a keyword that represents your niche in the domain. Or you can use your brand name as a domain if you want. Make sure to register a .com domain if possible. You can get a .com domain for around $10 per year (INR 500).

Choose a web host:

Once you have selected the domain name, you need a web host for your website. I use Godaddy.com for all my websites and though it is not the most popular option for hosting, I have not got any reasons to complain till now. Hostgator is another popular option. On both these websites, you can get a hosting package for about $60-$80 (INR 3000-INR 4000) per year. Though there are even cheaper options, I won’t recommend going for them as the service may not be good.

Build a website:

Now comes the tough part- building the actual website. If you don’t have a lot of money to spare for your website design, you can go for free website builders or CMS. One of the most popular options these days is WordPress. Creating a WordPress website is really easy and anyone can do it without any HTML or coding knowledge. You can search YouTube for some helpful tutorials. I plan on posting a tutorial creating a WordPress website soon. So you may check that later.

If you are planning on setting up an online store, you can check DIY options like Ecwid. Ecwid has a free WordPress plugin and is really easy to set up. Also if you have a PayPal account, you can easily set up the payment feature too without the hassle of setting up a merchant account. Once your business is established, you can explore other payment options.

Please note that the free DIY shopping sites are ideal for small stores only. When you plan to extend your store and include more functionality, you may need to hire a professional web designer.

Whatever option you choose for creating a website, there are a few things you should take care of. The website should have clear navigation, informative content and should be very user-friendly.

Before you set out to create the website, I suggest you to first work on your website copy. Content is the king may be a cliché but it really is the king. You need an attractive copy to drive visitors to your website as well as for the search engines to rank your website. Also include an opt-in offer to collect email addresses. Add a Facebook “Like” or “share” option on your website as well.

3. Drive traffic to the website:

This is the most important step and is a defining factor for a successful online business. If there are plenty of visitors on your website, the chances of conversion are better. Moreover you can monetize your website through Google Adsense, paid ad slots as well as Affiliate Marketing if you have a decent traffic.

For driving traffic to your website, you must make your website relevant to search engines and that’s where content comes. Content is the king may be a cliché but it really is the king. You need an attractive copy to drive visitors to your website as well as for the search engines to rank your website. You can do a keyword research first and then use the targeted keywords in your content intelligently to make it more searchable. You must keep your website content fresh and up to date. Other ways to drive traffic is to use social networking websites like Facebook and Twitter to target the niche market.

Apart from organic traffic, Pay-per-click advertising is an easy way to drive traffic to your new website. The ads show up on the search pages immediately and allow you to test various keywords. Also they have flexible prices, headlines and selling approaches to choose from. You can also find the best keywords through these ads and use them on your website copy and code to increase your ranking on search engines. You can also use Facebook ads to get the attention of users at a low cost.

As you begin to drive traffic on your website, make sales and try to win customer loyalty by providing an excellent service. Establish an expert reputation in your field and keep your customers up-to-date via newsletter as well as social networking websites. There is almost no end to business expansion after the first hard steps but it’s all worth in the long run.

How to Beat Your Competition in Business

Competition exists is every business. There is no escaping the mountainous task of meeting up the challenges posed by tough competitors in order to sustain a profitable business. Although competition is threatening to many entrepreneurs, healthy competition actually induces positive energy in business and pushes it towards betterment. As Herbert Hoover  puts it, “Competition is not only the basis of protection to the consumer, but is the incentive to progress”.

Ready to get ahead of your competitors? Below are some basic rules to outdo your competitors and get more market share and more customers.

1. Be a Specialist

how to beat competition Specialists are sought after people because they have a high value attached to their specialized work. People are more trusting when they know you are a specialist in a field. The best way to outdo your competitors is to pick a defined field of your business and be a specialist.
 

2. Do creative marketing:

Marketing is the only way to prove your presence in the market, so keep aside a handsome amount of money for some heavy marketing even when sales are down. Creativity and unconventional marketing methods are keys to successful projection of business. Also find out new marketing strategies overlooked by your competitors. For instance, lots of online businesses employ only online methods to promote themselves but using some offline marketing methods can also be helpful in driving traffic to the online business. Explore creative ways to convey your product and look for niche markets as well as unexplored marketing zones overlooked by your competitors.

3. Employ excellent customer service:

A good customer service can take you a long way down the road of success. Employ best customer service and go an extra mile to satisfy your customers. People should feel pleased and enjoy their experience with you to the fullest. Complaints should be taken patiently and fixed to the utmost satisfaction of the consumer. These happy customers will market your business much better than you can do yourself!

4. Make exclusive offers:

Offers and sales are magnets for customers. Use them better than your competitors. Evaluate your offers and make them as irresistible as you can. Always make better offers than your competitors as it will eventually be beneficial to you in the long run.

5. Use personalized marketing:

Twitter and Facebook have certainly opened up new avenues in the new age business world. Now you can personalize your marketing strategy by contacting your customers directly. Make your customers feel important, use different strategies for different target markets and keep their interest intact with regular interaction.

6. Lead in innovative elements:

Brainstorm for creative ideas to market and improve your products or service. Be the trendsetter rather than a follower. Keep aside some time to think of bringing new elements in your business and keep pushing for progress. Regularly add new elements to keep an edge over your competitors.

Compete with creativity and positive energy. Constantly analyze your competitors for a fair comparison in all fields of business. Employ defense mechanisms in case of negative competition but always take a lead in impressing customers with innovations and best customer value.

7 Golden Rules to Planinng a Successful Business Venture

There are many ways of earning money. Some try doing job, some business and so on. However opting for business needs few skills in earning profits. There are various ways to become  successful in your business , but being a successful person in a dream project is important.

7 GOLDEN RULES TO PLANNING A SUCCESSFUL BUSINESS VENTUREDo you want your business to grow?  Are you aiming for profits? Want to plan a successful business venture? Then here you go with the best 7 golden rules to plan a business project

 

1.    Business structure: First and foremost to start a business the entrepreneur should begin with a good idea. A plan sheet should be created for all resources, revenues, income estimation, expenditures, profits and loss. All these are to be itemized and should be inventory.  The person should have the best business skills and right leadership qualities to run a business.

2.    Developing the business plan: Whatever ideas come up during a meeting can be written as a document so that it helps you to utilise the ideas. Take advice from a financial advisor who can help you out in all aspects. Build a plan so that you are ready to launch any kind of business. According to the firm, seek investors and financiers.

3.    Location and selection: The location of your firm should be able to grab opportunities and should also be accessible from home or any website. Choose a site where the rent is within the budget, flow of visitors and traffic is more. For example: if you have any cloth franchise, then you would get more business if it is in public display rather than in secluded area where not many would notice it. Consult an attorney before taking the place for lease or signing it.

4.    Must and should: Necessary licenses and permits should be taken. Permit should be taken from local municipalities and nearby residents. If starting any medical, small scale industry or any alcoholic businesses then make sure all the permits are taken as it can create a problem if ignored. The chosen business name should be registered by a corporate officer.

5.    Purchasing items: Depending upon the firm the equipment’s, goods, tools are purchased. This may include machinery, computers and necessary inventory and supplies. This may be a burden to the investor as the machinery is very expensive. A start-up investor may not have sufficient cash. He can opt for any business loan, personal loan or payday loans. Once he gets profits on his businesses he can repay the money taken.

6.    Advertising: This is another major part of the organization were the propaganda should be outlined in order to get profits and good fame. This can be done by paper work, online advertising or any internet marketing. Advertise your company in order to gain customers. Create a good website with related information and contact information. This can be useful for selling goods on internet, sending e-mails and receive feedback.

7.    Sharing: Not only investments and profits even the loss should be shared by the partners. The ideas, views and all stuff must be mutually shared. The person should be capable of taking the pitch of an idea.

So these are the 7 golden rules to plan a successful business venture.

This is a Guest post by Michelle, a tech writer from UK. She is into Finance.  Catch her @financeport

 

Tips on getting money for business from friends and family

If you are a small business owner, you probably know how difficult it is to get finance for business, particularly for a first time small business entrepreneur. No need to hold off your dreams just because you are unable to get funds from bank or other sources. If you are unable to get a business loan, yet you are sure your business idea is going to work, you can turn to your friends and family for getting some funds. Taking money from friends or family is always considered a risky business and you have to be very tactful as well as truthful so that you don’t jeopardize your relation with them.

But you need to take the risk and go ahead with your plan if you want your dreams to come true.  Here are some tips to help you get some cash for your startup:

1.      Seek the right time:

You need to be patient and wait for the right time to ask for money. You cannot exploit a happy family moment to ask for money. Never ask for money when someone had a bad day or a fight, chances are you won’t be helped.

2.      Show your faith and passion:

When you ask for money and tell them about your business plans, show optimism and faith in yourself. If you say stuff like that ‘I will try but’ you will end up having no money at all. So just stay upbeat, be very confident and share with them a colorful positive picture of your vision. Remember that no one will believe in you if you won’t believe in yourself.

3.      Be Respectful and keep the right attitude:

tips of getting funds from familyIf you are asking for their input in your dream and the project, they will obviously get involved and give you suggestions. So listen their suggestions, keep them updated about your project details and show respect if they stay around you. No one wants to see their money going down the drain so if you are actually taking their money, you are giving them a right to get involved.

4.      Present a complete plan:

Nothing gets the confidence of a person than a neatly written down well sorted plan. If you want to go an extra mile to get the confidence of your family and friends, take the pain of planning out in a well-written format. You will surely impress them with your planning and dedication.

5.      Sign an agreement:

Most people overlook this important point while dealing with friends or family, but let me tell you, it will save you in tough times. If they agree to give you some amount of cash, write down the agreement clearly, set down rules and mention the risks. Get it signed in the front of at least one informal witness.

6.     Choose someone who can afford to lend:

When approaching a friend for money, make sure they can afford to lend or lose the money. Do not get the money from someone in dire need of cash themselves. Also ask for the minimum amount not the maximum.

Always keep the above points in mind before approaching a friend or family member for a loan for business. We all know how relationships can be ruined if one is not careful and not invested enough in the new business idea. Don’t ever make that mistake!

 

Online Shopping in India – My Reviews

I love shopping! There,  I said it.  But managing a business, particularly a start up can suck up all your time and my regular shopping expeditions are not regular anymore. So what does a girl do? Online Shopping comes to the rescue. Though people have been shopping online for quite some time in the rest of the world, in India we are generally more wary of Online Shopping. But thanks to a slew of new e-commerce websites in the last couple of years offering COD (Cash on Delivery), more and more people are jumping the Online Shopping bandwagon.

Online Shopping IndiaI am sure that almost every month you hear of a new shopping website. Now with so many choices to go for, which site do you choose? The main thing that defines online shopping experience apart from ease of website navigation and payment is Customer Support. I do quite a bit of Online Shopping, so I am going to list my experiences with some of the popular shopping sites.

Jabong.com

I have had some of my best shopping experiences with Jabong.com. I have shopped 4 times on this website and every time I was dazzled by their great customer service. Need some extra info about clothes or shoes sizing? Just call them and they will help you out. Not at home when the product is delivered? Just ask the courier guy to deliver the products to your next door neighbor after verifying and they will do it gladly. Apart from the great customer service, they have a good website with excellent navigation, a great selection of products ranging from Apparels for Men, Women and Kids to Cosmetics and Home Accessories. Highly recommended website!

Flipkart.com

Flipkart is a great website for Electronics, Computers, TV, Books, Mobiles and related accessories. I have shopped thrice on Flipkart and every time they have delivered within the next day. Though I have read some bad reviews about Flipkart recently, my experience with them has been good. (Maybe I was lucky or maybe they have improved their customer service!).

Though I personally don’t like the website design much, but it is functional and usable and that’s what matters most in a e-commerce website.

Fashionandyou.com

I am on the fence about this website. I love a great deal as much as the next person and this website offers some pretty great deals on High Street and Designer brands as well as some local Indian brands. I have shopped 4 times on this website. First time, it was a good experience. I received the products on time. Second time I ordered a handbag from a brand I had not heard about. But the bag looked nice and the discounted price of the bag was a fraction of the original price. I thought I was getting a good deal and so I ordered it. When I received the product, it was really low quality and I believe that the discounted price should be the actual price (not the original price mentioned on the site). So I think you should stay away from the lesser known brands as it is just a marketing ploy to show a huge discount on the products. Being a compulsive shopper, I could not stay away from this website (who can resist Guess, FCUK, Zara at 80% discount!). So I shopped yet again and ordered some known brands. Though this time I got the right products, the delivery took more time than mentioned on website and I had to call their Customer Care several times. Now I shopped once again on this website, ordered a popular Indian brand shoes and got the same shoes but the brand name was different (I had not heard of it).  I did not call Customer Care as I know they are not too prompt and just decided to not shop on this site any more. But who knows if the next big sale can lure me or not?

My verdict: Shop with caution on this website. Don’t order lesser known brands and don’t trust the delivery time mentioned on their website.

Babyoye.com

Babyoye.com is a popular store for Baby and Maternity products and is endorsed by Bollywood actress Karishma Kapoor. I had heard a lot about this online store and finally ordered some products a couple of months ago. I ordered two different categories of products and interestingly they sent me two separate invoices. Also one of the product was delivered promptly and the other one took almost 15 days and that too after many emails to their Customer Support. Though I must say they were prompt in communication. This may be a one time glitch and I think I should not judge the website based on this. Maybe I will give it another try soon. Also their in-house brand baby clothes were of good quality.

Hoopos.com

This is another Baby products store. They have a decent collection of baby and maternity essentials and the website is pretty good too. I ordered a few products once and I got them on time. They also have occasional good sales on the website. Worth to give it  a try!

Violetbag.com

This is a a great website for Cosmetics, Accessories and Personal Care items. I shopped for cosmetics online for the very first time on this website. Their customer support is great and I received all my orders within 3-4 business days.

One suggestion: They should stock some more brands. Right now it is very limited.

Droppedpin.net

Now this is a website that is different from countless other websites selling Women’s clothes, accessories, makeup etc. They have a wide selection of trendy products – some known brands and some unknown but stylish brands and in all budgets. What’s not to love? Well, their delivery time which is 20-27 days. They claim that they source their products from all over the world, so it takes time. I had ordered a product on their website and it was delivered after 22 days. That’s a big downer for me. Will I order from this site again? Maybe if I see something unique which is not available elsewhere. Also I won’t order anything expensive on this site considering the delivery issues.

Stylecraze.com

If you love makeup, you are going to love this site. They have a great collection of cosmetics and provide good customer service. They ship within 3 days and offer free shipping for orders above Rs 250.

Also they have this amazing StyleCraze Community where you can interact with your fellow makeup addicts.

(Update: Due to a recent change in their business model, they no longer run the eCommerce website and now focus solely on the Community.)

Majorbrands.in

This website has a good collection of some High Street brands like Mango, Aldo, Nine West etc. and also some good cosmetics brands, particularly Inglot. The website is good if you are loyal to certain brands but in my view the site can benefit by adding some more variety and more brands.  I had ordered Inglot Cosmetics once here and got the order on time. So no complaints there. I will definitely give it a try again.

I will post reviews of some other websites soon. I would love to hear your views and experiences on these shopping websites.

(Note: I was not paid for this review and am not biased towards any website. This post is based on my personal experience)

Money management basics for small businesses

Ok, so you have started your small business. Now comes the tough part- running your business smoothly and effectively. You need to have a basic money sense to do that. You don’t really need to get an accounts degree for having a good money management sense. You just need to know the basics of money handling. If you can afford an accountant, nothing can be better than that. But there are several aspects of money management that you should keep in mind to keep a check on what your accountant has been doing. You really don’t want a high debt and a negative balance sheet in the long run.

So let us understand some money principles to follow:

1. Book keeping knowledge : 

Money-management-basics-for-small-businessesLet us start with some book keeping knowledge. As stated above, you don’t need to have a degree in accounts but a general knowledge is a must to keep your business engines in fast gear. The best entrepreneurs keep themselves armed with the knowledge of money basics.  You just need to know about cash flow, inventory management, assets and liabilities, how your credit card works, how to read a balance sheet and income statements. All these important aspects should be on your fingertips for gaining an insight into your money flow.

2. Banking:

Most of the people I know don’t care about the importance of good banking. Your business’s actual financial health is going to depend largely on your bank. You bank’s offers and usage, its maintenance fees, cash withdrawal fees, online banking facility, interest rates and overseas draft fees will surely suck up your budget if you don’t choose wisely. Use a bank specifically providing services for small business if you can have the option. This will benefit you in a lot of ways.

3.      Assets and Liabilities:

So, what is an asset and what is a liability? An asset is anything which is helping you bringing in cash. Liability is anything which is exactly the opposite. Office furniture is a liability while your product is an asset. If you concentrate on how to develop assets and decrease liability, you will definitely stay on the money management success road.

4.      Credit management :

Credit money is the plastic money which has been replacing the old money payment methods like check and cash. It is quite important for online entrepreneurs to use credit cards for payments. All you need is to open a credit merchant account. But your fees will be calculated with your business’s credit score. So keep a healthy credit score. Also the credit score of your business will impact widely on your options for taking interest. Low credit scores often result in the refusal of loan or higher interest rate. So if you are using a credit account, try making payments on time for the future of your business.

5.      Budgeting:

And last but far from least you should have a budget. No business, home or country can run without a proper budget. You can use accounting software to make budgets which are very accurate and easy to use.  If you are bootstrapping, you can search for some free accounting software or get good software for a very small amount (far cheaper than hiring an accountant). You should set aside some money for taxes as well as plan in advance for some anticipated big expenses like upgrading software/computer, office renovation etc.

Having a proper financial system in place will avoid unpleasant surprises in future.