Essay Budget Setting : Investing Your Money Back Into Your Business

Essay Budget Setting : Investing Your Money Back Into Your Business

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Budget setting - Investing in your business

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 ... 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.

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