Let’s talk about a subject that might make you a little uneasy: Money. There, I said it. As entrepreneurs, many of us start businesses to turn our hobbies, passions and interests into full-time jobs. We listen to advice like “Do what you love, and the money will follow.” We enjoy our work so much we’d do it even if we didn’t get paid. But the problem is, sometimes we don’t.
If you’re not getting paid—or not getting paid enough—then the hard truth is, you’re not running a business, you’re supporting a hobby. But for many of us, numbers aren’t something that comes naturally. Often entrepreneurs are creative, seat-of-the-pants types with short attention spans. (That’s why we start our own companies.) But that approach to life doesn’t always mesh with the “sit-down-and-crunch-the-numbers” approach that’s needed to make a business succeed.
With the end of the year just past and your 2011 taxes fresh in your mind, now is the time to take some steps to make 2012 a more profitable year for your business. Here are three steps I suggest:
There are many more steps you can take to make your business more profitable in the coming year. If you’re still uncertain what to do, get matched with a SCORE mentor who can guide you through the ins and outs of small business finances. Who knows? You may just find you enjoy crunching numbers—and watching the figures in your business bank account add up.