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

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Outsourced CFO | Why It Is So Important To Pay Bills In A Timely Manner

That not only is it prudent advice to pay their bills in a timely manner says outsourced CFO. But doing this can literally help them succeed in business. Therefore, business owners need to make it a regular occurrence to consistently pay all of their bills every month, so that they can learn how to ensure that there profiting in their business.

One thing that is important for business owners to take into consideration, is that if they are paying their bills regularly, on time and in full every month, they will be able to very easily tell if they are making enough money to pay all of those bills. This will point to whether they are financially viable or not. If they are not able to pay all of their bills, then they will be able to see this very quickly, and be able to change their actions as quickly as possible to help them generate more profit in their business.

Outsourced CFO says that business owners have several options in how they can address not making enough revenue in their business. They can increase how much their selling their products and services for, and thus increasing the profit margin in their business. They can also start increasing the revenue-generating activities of their business, perhaps increasing the online marketing that they are doing, even doubling their online ad spend, to find more customers. And perhaps, business owners can minimize their overhead, so that they can end up being more profitable. Any of these things can help a business owner make more revenue in their business, so that they can not only fail their bills, but have additional revenue in their business to grow from. However, it will be possible for an entrepreneur to know that they should do this, without ensuring that they are paying their bills on time they month.

When myth that entrepreneurs believe, is that if their business is not financially viable at a small size, all they need to do is scale their business up and that will fix itself. However, outsourced CFO cautions business owners against this strategy. Whatever their business is doing as a small organization, it will do is a large one. Therefore, if an entrepreneur scales up a feeling business, they will simply have a large failing business.

Business owners need to understand how important it is to pay all of their businesses bills on time. Not only will it be the most ethical way of running a business, but it can literally help ensure that they are able to be financially viable. They will also be able to see that if suddenly this changes, they can take a look at what other things have recently changed in their business, that can help them get back on track. However this is not possible to do unless a business owner is first getting into the habit of paying all of their bills on time in a timely manner.

Outsourced CFO | Why It Is So Important To Pay Bills In A Timely Manner

It is very important that business owners are doing what they can to ensure that they are paying all of their bills every month says outsourced CFO. In fact, since running out of money is the second most common reason why businesses fail, business owners need to ensure that there doing everything they can to avoid this problem.

How paying bills on time can help entrepreneurs avoid running out of money, is it allows them to see if they are able to afford their staff are not in their business says outsourced CFO. While business owners often use sweat equity, and work very hard with no payment to themselves, that is okay to do for themselves. But it is definitely not okay for entrepreneurs to expect that of their staff. They must ensure that they are paying their staff regularly and on time every single month. Therefore, business owners who are writing it very hard to pay their overhead, may need to make the difficult decision to lay one of their administrative staff off. And while this is an uncomfortable decision, the overall longevity of their business will depend on it.

One thing that business owners may find, is that if they are having a hard time making ends meet, there it is from unsustainable overhead, or not generating enough revenue in their business, is that if they do not fix this solution as early as they find it, it is going to compound. Outsourced CFO says every month that an entrepreneur is again not able to meet all of their financial obligations, ends up increasing the amount of money that an entrepreneur is in debt by. It will not take a very long amount of time before business owner is unable to recover from the amount of debt that they have. Therefore, it is very important that entrepreneurs focus on doing what they can to increase their margins, their revenue and minimize their overhead so that they can avoid having debt pileup.

Once a business owner starts having debt accumulate, they will think of creative ways to avoid paying other things, so that they can pay their debts. Outsourced CFO says that one mistake that business owners may make is by failing to pay taxes on time. Not only is Canada revenue agency very aggressive in collecting all of the taxes that are owed, from freezing entrepreneurs bank account, to simply taking all of the money out of it. Business owners can end up making a hard situation worse. Not only that, but Canada revenue agency will hit entrepreneurs with stiff penalties for failing to pay taxes on time, that can end up causing a business owner to run out of money in their business.

Business owners should understand how important it is to pay their bills on time, not only will it help them ensure that they are being as reactive is necessary to increase the revenue in their business. But also, it will help ensure that they are setting a great example for their employees, and ensuring that they are running their business as ethically as possible.