You may operate a home business selling services or products, but no matter which kind of business you’re in, there’s always a question in the back of your mind: will my home business succeed or fail, or do I have the motivation it takes to keep it afloat? Whichever type of home business you have, it’s important that you know ways that you can keep your business going during slack times and/or economic downturns. If cash flow is a problem in your business, you should be sure to make certain that your money management techniques are on target and well refined. However, take particular care that you are courteous so these vendors will consider you a friend.
Some of the things you can do to make sure your business will survive in the 21st century is to avoid impulse expenditures. There are many reasons for impulse spending, even as it applies to business. We may fall under the persuasive spell of a salesperson who has talked us into buying things we don’t need. Maybe we simply made impulsive purchases because we had a little extra money, or perhaps to keep up the appearance of prosperity. Then you realize a few days later that you’ve committed some of your business funds to products or services that are not necessary for the success of your business.
Here are some tips to help you avoid these impulse purchases and make certain your business succeeds:
You can help control impulse purchases by requiring two (or more) signatures on all company checks over a set amount. This will give you time to seriously consider whether or not you really need the product or service you are about to buy. If you are vulnerable, you can get yourself out of the grasp of an insistent salesperson if you explain that all purchasing decisions are contingent upon the approval of a second party. This so-called second party can be anyone – a partner or a department head or even a family member.
If you are the sole owner of your business, you won’t need to worry about these impulse spending patterns because you normally have three days to cancel your purchase if you decide you don’t need it or that you can’t afford to spend the money. However, be sure that you don’t skimp on services or products that you really need. When business is slow, you must learn to say “no” to anyone, even friends, who are trying to sell you unnecessary items. When business is good, you will probably allow more vendors to show you new equipment or new lines of so-called “new and improved” merchandise; otherwise, concentrate on your basic needs.
If you commit yourself without investigating all details and charge ahead, you may be setting yourself up for failure. Be certain that you are prepared for all situations and emergencies that could arise. It pays in the long run – regardless of cost – to ask for professional advice before you start on any plan; it may prevent failure of your business. A business without a plan is like a boat without a rudder, you may be lucky and drift safely shore but most likely you’ll end up on the rocks with 90% of other home business owners who fail because they don’t have a plan and goals.