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So as we all know to succeed in business you have to know how to manage money, so, what tips, tricks, or plans have you implemented to help you manage money? For example, I keep at least 2-3 months worth of fixed expenses in the bank in-case anything comes up, like no work or whatever the situation may be.

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Money is like a river. You're like a rock in the middle of the river creating an eddy. You can slow the river down, make it pool a little, but ultimately the river will keep flowing. Just make sure you don't let the river flow past you too fast or your eddy will dry out.
 

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Simple really. Make more than you spend.



Your welcome.
 

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My favorites book on money is a very simple read, its called " The richest man in Babylon".

If only I could manage to pull off the simple money management that they advise, live on only 70 cents of every dollar, life would be good.
 

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My favorites book on money is a very simple read, its called " The richest man in Babylon".

If only I could manage to pull off the simple money management that they advise, live on only 70 cents of every dollar, life would be good.
You do. As a matter of fact quite a bit less than that. The man in babylon would have been appalled if he saw what our government strips us of today.:thumbsup:
 

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My favorites book on money is a very simple read, its called " The richest man in Babylon".

If only I could manage to pull off the simple money management that they advise, live on only 70 cents of every dollar, life would be good.

My father in law gave me that book close to 30 years ago. Remains one of the best financial books I have read. Keep it simple :thumbsup:
 

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So as we all know to succeed in business you have to know how to manage money, so, what tips, tricks, or plans have you implemented to help you manage money? For example, I keep at least 2-3 months worth of fixed expenses in the bank in-case anything comes up, like no work or whatever the situation may be.

Let's here it...

I had my wifes name taken off of my business account.:whistling
 

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My money management:

Remember,

1. YOUR NEVER MAKING AS MUCH AS YOU THINK YOU ARE.

2. Invest your money don't spend it. Take it for what you will but if you think about it, it makes sense.

3. Set your limits and stick to them


Make a list of all the things you want and spend the next 20 years of your life getting them. I very rich and smart former boss of mine told me, Ryan - if you want to be rich or have a lot of money just remember, you just have to use time to your advantage. 1 rental a year for twenty years....And don't be dumb.

Thats it.
 

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The invest/spend goes to every purchase.

Spend on batteries, Invest in high quality rechargeable batteries.

Spend money on labor. Invest in training.

Spend money on advertising. Invest in marketing/website/t-shirts/salesmen

spend money on accounting. Invest money on accounting software.

it never ends.
 

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So as we all know to succeed in business you have to know how to manage money, so, what tips, tricks, or plans have you implemented to help you manage money? For example, I keep at least 2-3 months worth of fixed expenses in the bank in-case anything comes up, like no work or whatever the situation may be.

Let's here it...
I would say that 2-3 months is too little. We keep 6 months of reserve operating capital. We factor that into every job and put it away religiously. Once we have 6 months of liquid capital, we invest 6 more months. Once we have that bucket filled, we start using that additional revenue for capital expenditures or new equipment.

The best thing you can do for your business is to have a large savings account and borrow short-term against it. This establishes a wonderful credit rating that allows you to keep a good relationship with your banker.

Invest in your employees and their dreams. Donating to charities that they pick out in their name is a great way to do this. We allocate 1% of base pay to charity per employee (matched, we don't take this out of their check).

One other thing is to get accounts with all of your suppliers and insist on 2% Net 10 or Net 30 Days terms. This allows you to take a 2% discount on materials and supplies over and above your negotiated discount. It adds up.
 
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What Kind of margins do you operate on

I have a rule that I put 10% of my Gross Income aside for investing in my business, unexpected expenses,etc.. It has served me well.

Colin
Vancouver, BC
www.coveinspirations.com
I admire you can set aside a full 10% - I was wondering what kind of margins you are able to work on in remodeling - Sounds like you would need 40% gross profit ,from my experience, to have an extra 10%. Would you help enlighten me.

Many thanks,


Terry
 
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