Treat your business like a business - Part 2

Some more information from The Success Factory. Although we're not like the typical direct sales party plan business there is a lot here to chew on and consider as you desire to actually make money in Noah's Ark. What do you think?

Subject: Assessing the financial health of your business - Part 2

Today we will go over the second half of our questions on the finances of your business. Read on!

1) Am I spending money on extra hostess gifts (over and above my company's hostess plan)? While it can be OK to “sweeten the pot” keep in mind a couple of things. Always give products from your product line - remember, part of your job is to use your product. Often to keep expenses down you can split things up to make it less expensive. Also, ask yourself this, “Do I really believe that my company's hostess plan is good?” If you do, then why are you spending money adding to what's already provided? Remember, what you do for one hostess you must do for another and, do you want to give the message that your hostess plan is not really rich enough? Just a thought.

2) Am I mailing out catalogs/brochures and sale fliers without asking my customers if they want them and/or not following up? If you are, go to your front door, open your wallet and let the wind take away your money. What you are doing is wasteful!

3) Do I often spend cash when a customer uses the real “green stuff” (vs. check or credit card) instead of depositing it? It is as important to track income as it is expenses. If you don't deposit the cash you get, you can't accurately track income AND it WILL leave your husband with the idea that you're not making enough money because you are spending that money on lattes or Happy Meals!

4) Am I paying at least one family bill in addition to all the expenses created by my business? The sooner you do this, the happier your spouse will be. This monthly obligation will also put some pressure on yourself to keep your calendar full (always a good thing!)

5) Am I doing enough revenue generating activity each week or am I spending too much time playing office? It's easy to spend time making fliers, setting up filing systems and sending out mailings. But truth be told, this is playing office. And playing office doesn't pay the bills. Get on the phone and book some parties!

6) Am I keeping good financial records? The better records you keep the better you will be able to move on to the last question…

7) Do I know how to file a Schedule C so my family benefits fully from the tax advantages available to me because I have my own business? The IRS website is a wealth of information on this topic. Do it yourself or better still, hire an accountant familiar with the party plan industry to maximize the tax benefits to your family of running your own business. His fees will be tax deductible on next year's tax return and he should be familiar with the tax law changes that occur from one year to the next.

Keeping good records doesn't have to be cumbersome. Just have a place (a box, a folder, an envelope) if nothing else where you throw every receipt and then once a month, quarter or even at the end of the year, go through and make a list of them. Save EVERY invoice/packing slip from the home office and write out a receipt for EVERY piece of product that you sell.