08-Jan-2013 18:53

Starting a biz in 2013?

One of my sons has fairly recently – and rather successfully - begun a new business advising and promoting Medical Health & related Insurances, targeting both the residential & corporate sectors.

He has naturally asked ‘Dad’ for a little advice & I’ve passed on a few tips gained from over 30 years as a self-employed businessman & employer…

Below are just a few quite obvious tips that may ease your path to business success too - I certainly hope so:

1) Pricing
When you’re starting out in business - or if you run a small company - it’s very easy to set your prices too low. Many, if not most, business-newbies & small business owners worry that either they won’t gain any new clients if they charge too much, or they won’t make enough turnover, so they often charge too little, or reduce their commissions or include ‘extras’ for new clients. Don’t - this is eating into your profit! Remember, do remain competitive; do sell hard, but don’t price so low that your profits are minimal or non-existent..

2) Expenses
To reduce your tax liabilities and ensure you keep as much of your hard-earned cash as possible, remember to keep and file all receipts for any & all business costs and expenses you’ve incurred for your business.

3) Cash Flow
Ensure you get paid promptly and don’t extend credit terms. Many businessmen are far, far too nice to their clients in this area. Late payments remain unchased & are ignored. The first rule to remember is that without sufficient money coming in to pay your bills, your business will not survive. Certainly talk to late-paying clients, but if all fails, it may even be better - difficult I know - to just stop supplying repeat offenders.

Follow the above as your 2013 New Year’s business resolutions and put yourself back in control.

It may prove hugely beneficial for you and your business in the long run.

Good luck!