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E-Myth – “Why most small businesses don’t work & what to do about it”

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Outsourced CFO | Understanding Why Paying On Time Is Important

If business owners are not making efforts to pay all of their bills on time every month, outsourced CFO says they may end up with a difficult situation in their business. They may not understand how much money they are making in their business, they may not understand if they are making enough money to pay all their bills or not. Therefore, business owners need to put a huge effort into ensuring that they are paying their bills on time every month, early on in their business.

One of the first things that business owners should take into consideration says outsourced CFO, is that if they are not financially viable as a small business, scaling up is not going to help their business become more financially viable. In fact, outsourced CFO says that if a business is not making money small, a business owner might think that adding more customers and more jobs are going to help them. But if they are not financially viable at a small size, scaling up vicious going to scale up the problems that they are having as well. Making scaling up an ineffective solution to not making ends meet.

The next thing that business owners need to understand, is that when they are able to pay all of their bills on time, they will be able to very easily see if they can afford to pay all of their bills on time. If they are not able to, outsourced CFO says that they just have a few different options that they can try that will affect their ability to be financially viable. They can increase the prices of their products and services, to increase their margins and make more money. Or, they can engage in revenue-generating activities, from increasing their advertising, to increasing their sales calls. And finally, a business owner can minimize their expenses by cutting their overhead. By looking at those three things, can help an entrepreneur who is not making their ends meet their how to be profitable in their business.

Business owners need to understand how important it is to understand if they have sustainable overhead in their business or not. Outsourced CFO says that is very important to realize very early and fact. Because if they do not have sustainable overhead, they are going to want to find that out very soon, so they can minimize the amount of months that they are accruing a larger overhead. Therefore, if business owners are paying their bills on time, they will be able to see very easily if they need to minimize their overhead.

Very important for entrepreneurs to stay on top of their bills, so that they can understand if they are making enough money in their business to pay those bills or not. By learning how to do this early on in their business can help entrepreneurs understand what they have to do to ensure that they remain financially viable. If they learn this before they scale up their business, they will be able to have more financially viable business no matter what size they grow into.

Outsourced CFO | Understanding Why Paying On Time Is Important

It is very important for entrepreneurs to understand how important it is to pay all of their bills on time says outsourced CFO. Not only is this important to ensure that they are able to make changes in their business to make them more financially viable if they are not. But ultimately, because this is the most ethical way to run a business, and it will help an entrepreneur build a business that they can be proud of.

Ultimately, business owners who are not meeting their financial obligations, sends a message to their team that it is not important for them to meet their obligations as well. The matter how much work a business owner puts into building the company culture that they desire, ultimately the team will follow their example. Therefore, if a business owner is not paying their bills on time, it slowly starts to affect the team, and their boys are going to start following that example. Business owners should expect their team to stop coming in on time, leaving early, and not meeting their deadlines. Therefore, business owners can expect the quality of work to decline when they leave their team by this terrible example.

Another thing that business owners need to take into consideration when they start their business, is that by paying all their bills on time, they are building a business ethically. If they fail to do this, they will end up impacting their business negatively and not realize that says outsourced CFO. When business owners failed to pay their suppliers on time, it affects the relationships they have with their suppliers. This can end up getting a business owner up or reputation, that will ultimately cost them a lot, especially in customers. A business owner may not even see the customers that they are not getting, due to their poor reputation. Therefore, business owner needs to run their business as ethically as possible, which means paying business bills on time, so that they can increase the chances of getting as many customers as possible.

Ultimately, business owners that failed to pay all of their bills on time every month, will end up with a situation of accruing even more debt every month. If they do not make changes to their profits eventually, they are going to end up accruing or debt every single month, which can create a situation of not being able to dig themselves out of the debt that they have accumulated. Therefore, it is very important that entrepreneurs understand that they need to pay their bills on time, so that they know exactly how much money they have work within their business, that can help them know what activities they should do in their business to increase their revenue, and if they have a lot of revenue in their business, then they can start making plans to scale up their business and succeed.