Make Sure to Enjoy Some of Your Profits

I'm Finally Making Money What Should I Do?

In a previous Post "Keeping Your Online Biz Financially Afloat" I wrote about the proper use of budgeting your income vs. expenses to make sure your business survives and grows.  If you have not yet experienced a profit in your business where your income is exceeding your expenses, make sure to keep that article handy and refer to it so you stay on track.

Once you are "in profit" and your income is more than your expenses consistently each month, it's time to enjoy a little bit of your success.  After all, we are in business to make money for a reason right?  Each of us has a different reason, so I won't even try to guess what they all might be. No matter what that reason might be, I recommend taking a portion of your profits and rewarding yourself.

One method that you may want to consider is dividing your profits into percentages.  So for example, you may take a percentage each month as a reward, a percentage to use for your needs or goals, a percentage for savings and the remainder for reinvesting in your business.

Please make no mistake that I am not suggesting you take all of the profits out of your business.  You need to keep money in your business to keep it going strong and headed in the right direction.  Only you can know what these percentages might be.  Having a good mentor to help you "run the numbers" would be extremely beneficial.  Or, feel free to start a discussion on this blog post.  I'd love to hear from you.

To Your Success,

Bob Swetz
Rjs@Home

Keeping Good Financial Records Makes for a Healthy Business

Keeping Track of Your Financials is Not Fun But it is Important!

Ok, I know this is probably the most boring topic I may write about, but it is important to track all of your income and expenses related to your online home business for several reasons.

• In an earlier post Keeping Your Online Biz Financially Afloat I wrote about the importance of budgeting.  Well, if you are not tracking all of your income and expenses, you won't be able to properly track your budget, which means you really won't know where you stand financially and whether or not you are doing well against your goals.

• Keeping track of the ins and outs in your bank account helps you know how much you have to spend at any point in time and helps you make a quick decision (which is sometimes necessary) about whether to join that program or ad site.  No money = no new program.

• Tracking ALL of your income and especially your EXPENSES can help save you big time when tax time rolls around.
• Now, I can't speak for other countries, but this is very important in the US

Some expenses that are often forgotten about are:

• Internet fees
• Paper supplies
• Computer and printer supplies
• Vehicle expenses if you have to run around to buy stuff
• Cell phone usage and fees
• The cost of record keeping systems
• And of course, the obvious
• Program fees
• Ad site fees
• Fees for tools like trackers, autoresponders, etc.

You can do all this book work on a simple spreadsheet.  Also, some banks have a component on their online banking site that will help.  Finally, there are many online sites, some even free that will help with your bookkeeping.  So, good luck and start tracking that money. 

To your success,

Bob Swetz

Rjs@Home

Keeping Your Online Biz Financially Afloat

How Do You Keep Your Online Home Biz Financially Afloat?

One reason most businesses fail, and I do mean most business, not just online businesses or home businesses is lack of money.

You may be feeling the financial crunch in your online home business as you are reading this article. Or, maybe it hasn't hit you yet.  In any case, it's time to start treating the finances of your business with the respect they deserve.

Let's face it, I'm going to state the obvious.  For ANY business to survive...

Money In MUST BE MORE than Money Out!

So, how do you make sure this is the case with your home business.

First, when you are getting started, you have to make sure you have at least a little bit of money set aside to invest in some advertising and a program or 2 to advertise.  These don't have to be large investments, but you will need money to invest.  Next, find ad sites that allow you to earn commission on referrals EVEN IF YOU DO NOT UPGRADE.  Once you start earning some commission, you can invest in some advertising upgrades which gives you more advertising power.

Finally, set a Monthly Budget based on what YOU CAN AFFORD to have going out each month even if you have nothing coming in.  Once you begin earning some cash with your advertising and program commissions, you can adjust your budget accordingly. DO NOT FALL PREY to folks trying to convince you to join every program that comes along.  Many try to make you feel guilty if you don't join.  This just wastes your precious financial resources.

To summarize:

• Make sure you have some cash to get started
• Start off with free ad sites that pay commissions to free members
• Don't swing for the fences right from the start
• Keep a budget and KNOW what you can afford
• Use commissions to upgrade to increase your advertising power
• Adjust your budget as your situation changes

This would be a good article for some conversation!!!

To your success,

Bob Swetz

Rjs@Home