Part of being good business man or woman is knowing about credit. Credit is where it’s at. The more you know, the better. The more you will increase your odds of succeeding.
PAYING ON TIME
How can you expect your clients to pay on time, when you have the same problems with your bills? What bills are you behind on? What money are you using to cover those bills?
Once you pay something off in full, cross it off your list. It doesn’t make sense to keep old bills lying around. It won’t give you an accurate idea of what you have to deal with presently.
MAKING CUT BACKS
There might be things you are buying, things you really don’t need. Look at your inventory. What is selling? What isn’t selling? If something isn’t selling, why are you ordering it?
If you only need something for a short period of time, invest in something which will deliver just that. Do you need something more long-term? If so, then invest in a loan which works for you. Don’t just settle for a loan that is popular. You need to be smart here.
EMERGENCIES: ARE YOU PREPARED
What happens when the economy goes bad in your area? What sort of cash do you have to combat this. Do you have enough put away for emergencies?
A good rule of thumb: Any excess cash you have coming in, use it to pay off your debts. Anything left over after that, put in an account. Let it accrue interest. The idea is to not touch it. Even it’s your business, it’s not your money. It belongs to the business.