Everyone wants a profitable business, because if not… well what’s the point? You have a hobby, not a business. A profitable small business has a healthy net profit margin of 10% or higher. How do you calculate your net profit margin? A profit is earning more money or assets than you spent. The inflow must
Looking at your balance sheet can be comforting or terrifying. The balance sheet shows the financial position of your business. It tracks your assets, liabilities, and equity. In plain language, it shows what you own, what you owe, and how much money you’ve invested into the company. It’s the first report your banker looks at
Entrepreneurs are notorious for “winging it” when it comes to wages in their small business. This includes deciding the hourly wage or annual salary they pay workers, the number of hours worked, optional benefits and raises. Each organization has a limit on what it can pay to stay in business. Know your limit! Create a system to
Have you experienced any of these money situations? This double-sided coin is a common struggle for small business owners. Where can you get the money to finance your business so you can grow? Hopefully, the list I’m about to share with you will help. Here are 7 of the best options to finance your business.
Owning a small business means collecting, managing and paying taxes. These include but are not limited to payroll tax, sales tax and corporate tax (or more depending if your business is operating outside of Canada). Sometimes business owners try to “save” on taxes by getting paid in cash. But are you actually helping your business
Business owners have so much to do on any given day that sometimes they don’t realize which systems are adding to their financial health and which systems could be hindering them. By reviewing and updating how you do things in your business, you create the potential to make more money with less stress. Have you
Understanding how cash moves in and out of your business strengthen your ability to make good business decisions. How you spend or save your cash affects your company’s financial health as well as your ability to market, develop your products and team, and take time away from work. Unfortunately, it’s not unusual for small business
Have you noticed your suppliers are raising their prices? Is the cost of operating your business starting to rise? What you’re experiencing is inflation. Here’s an example of inflation I’ve seen recently. It was common even a year ago to have a housekeeper charge $25 CAD per hour, now the going rate is $40 CAD.
Owning a small business means collecting, managing and paying taxes even if you are a self-employed “solo entrepreneur”. Determining what to save for your taxes varies depending on your unique business needs. A surprise at the end of the year is never nice. One of the wisest financial decisions you can make for your small
If not to make a profit then why are you working so hard? The most common question about profit asked by small business owners is: “why when my books show that I made a profit don’t I have any money in the bank?”. Do you know where your money went? Being fully familiar with your