By Jerry Bazata
Each year thousands of entrepreneurs take the leap of faith. You did, remember? Dropping the full-time employment and beginning your DJ business was entwined with the hopes and dreams of obtaining financial success and independence.
With all good intentions, these new entrepreneurs begin working on a business model, creating a plan for sales and marketing, purchase assets and dive headfirst into business development.
But as a commercial lender for over 30 years, I have seen countless business owners try to take control of their financial futures only to veer off on a path they had not intended—usually because of a lack of capitalization, financial discipline and a realistic understanding of what it takes to be profitable.
The success rate of a small business is entirely dependent upon the owner insuring that they take these five actions to insure you’re making all the right financial moves.
- Create an annual budget and manage to the bottom-line. Knowing how much you make is the easy part, keeping track of what you are spending is what often causes a business to fail. For each event you book, gain a clear understanding of the costs associated with delivering your services for the event.It’s not just limited to expenses related to the day of the event, but the costs leading up to securing the event, marketing, fixed costs to running your business, insurance, office operations and future replacement of equipment.