Earlier, the idea of investing your money back into your business was mentioned. It is a great way to build capital, but it is a risk. Could that money be put into something else? Could it be invested elsewhere? Could it be saved via easily-dissolved investments? Pumping your profits back into your business shouldn’t be done without a thought. Maybe you should hold the money so you can invest in your business later. For example, you may come across a product you can buy in bulk and sell quickly.
Just because you didn’t invest your money straight back into your business doesn’t mean you don’t have faith in it. It means your money could temporarily work better for you elsewhere until your business is healthy enough to guarantee more of your money.
Budget setting - How much should you draw
In March, you make a profit of $1400. You have invested some money into your business savings, have restocked and paid all your bills. Your $1400 is not much, but it is clear profit. If you are not going to invest it in your business, you may be tempted to take it for yourself instead of investing it elsewhere. How much of it should you take?
Covering your expenses at home is obviously important, but even if they are covered, how much should you take home? How much is going towards your new car or your new pool? After all, you are working to become rich, so why not start living rich?
How much should you take? You should take enough to cover your household bills to ensure you do not go hungry or homeless. The rest should be invested. Most millionaires spend $300 on a suit. Most drive regular cars, eat at regular restaurants, and live in nice but regular neighborhoods. People become rich because of...
... middle of paper ...
...to reduce the number of calls.
Implement the strategy - The payments department educates it accountancy staff on the new protocols and they start working the plan.
Monitor strategy - The staff diligently work the new plan. They are pleased about the new email system because it saves time, but they are not pleased about the phone-call script.
Review strategy - The email idea has saved a lot of money from the phone bill, and has freed up the staff a little more so that they have more time to do other things. The scripted calling structure isn’t working very well as many customers ask the staff to repeat what they said, and many staff members say that the script includes too much information and that the customers are being confused.
Start Again with a goal - Your phone bill is currently $78 per month, your goal is to get it to $70 per month.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The nature and necessity of money is one singular fact that responds to every thing in nature. It holds together the very essence of our beloved intricate nature, every local, regional or international issue of any significance could have been handled differently could there have been more or less of this money. The money factor has taken the centre stage of every heart beat of each and every agenda and it predetermines and dictates our very existence. Our relationships with most of what we seek identity with, whether object or human, is best defined by our relationship with this paper currency.... [tags: money, economy, ]
1326 words (3.8 pages)
- Money is the main reason that most people end up engaging in criminal behavior. Money laundering is how criminals sometimes choice to hide the money they make through their illegal activities. They will do almost anything to protect their wealth and enterprise. There are many different types of money laundering, International, small business, and drugs. We will research how these criminals run their money laundering schemes, and for a while avoid the attrition of police Officers, by trying not to get caught with evidence that can put them away for life.... [tags: evidence, criminals, money, banking]
825 words (2.4 pages)
- Within the sector of convention centers, the business case for investing in sustainability efforts at convention centers is mostly examined within the environmental scope. However, this does not mean that economic and social/cultural sustainability are mute points. In fact, the primary existence of public convention centers is to generate a positive economic impact for the local region. This means that a convention center’s construction is founded on the need for ongoing economic support to the local region and often the reason why some facilities will offer their space rent free to stimulate convention attendance and other direct spending.... [tags: Sustainability, Recycling]
905 words (2.6 pages)
- Investing your money is essential when looking for financial gain for your future. Numerous investments can be extremely risky with a high reward of gain while others are secure with a set amount that one will earn in a certain amount of years. When it comes to investing in stocks or bonds, it really depends on the person and what they prefer to gain out of it. Before investing in stocks or bonds, you should know what each have to offer and what you are willing to put money into. Even investing in stocks and bonds together can be smart in financing your future capital.... [tags: Investment, Bond, Preferred stock, Stock]
1117 words (3.2 pages)
- Over the past thirty days Coca Cola Stock seemed to remain stagnant. While over a long portion of time Coca Cola could be very profitable, as of right now it seems to be a constant range of $40 to $42. The risk with investing in Coca Cola stock is that if one were to be wanting to make money with this stock it would take a very long time. It is more the type of stock someone buys in order to retain their money instead of make money. This is not a bad thing in the long run, but if someone were obtaining their fortune in this way Coca Cola would not be the stock to buy.... [tags: Stock market, Stock, Coca-Cola, Risk]
934 words (2.7 pages)
- Ethics in the business world in my viewpoint are a great thing for businesses. The term ethics, according to Understanding Business, is the standards of moral behavior, that is, behavior accepted by society as right versus wrong (Nickels, 2013). In the view of a consumer it would be ideal to have interactions with an ethically bound business. My personal standpoint in dealing with an ethically correct business would instill trust into the business. If I knew they weren’t handling things internally or externally the correct way my view and opinions would go down.... [tags: Ethics, Business ethics, Business, Consumer]
1189 words (3.4 pages)
- Wealth and How Money Influences People's Lives Some people generate an adequate living working for others, some do quite well, while many people don’t do well. It is estimated that less than 16% of Canadians have more than $100,000 in their retirement funds while 38% have less than $10,000. Using money to make money is more likely to generate success. Using assets to generate wealth is likely to generate financial success. This is the principle in whihc my group is is based upon. Kiyosaki explains money does not calm your fears when desire forces you to spend.... [tags: Wealth Money Finances Financial Essays]
1132 words (3.2 pages)
- For the overwhelming majority of business owners, there will come a point at which they will have no other option than to consider a large capital injection. For most this investment will take place at startup and be recouped as time goes on. Alternately it may be undertaken on a continuous basis as the business develops during the first couple of decades, particularly if you run a public facing service such as a retail store. However, mature businesses may also need some additional capital to stay solvent as well or to expand to reach a larger market.... [tags: Loan, Debt, Business, Finance]
1184 words (3.4 pages)
- Time Value of Money The time value of money serves as the foundation of finance. The fact that a dollar today is worth more than a dollar in the future is the basis for investments and business growth. The future value of a dollar is based on the present dollar amount, interest rate and time period involved. Financial calculators and tables can assist in computing the future and present values, which eases the pain of the mathematically challenged. Yield or rate of return can also be calculated.... [tags: Business Finance]
1239 words (3.5 pages)
- Computer simulations are software applications that enable a user to run a model of a system. Users can interact with computer systems, setting input variables and observing what changes occur to outputs. They can animatedly explore the model domain in real time, start and stop the model, make changes to test hypotheses, and experiment in a non-prescriptive fashion. The interactive, dynamic and open nature computer-based simulation is an excellent teaching tool. A tool that put users in charge of their own learning, thinking process, and own understanding of a particular system, which create valuable individual learning experiences.... [tags: Business Management Strategy]
1658 words (4.7 pages)