Learning to run your business like a business can be one of the most breakthrough accomplishments of an entrepreneur. That day that you go from doing what you do just because that is what you do to doing what you do because there is a well-formulated business purpose is one of the greatest accomplishments of an entrepreneur.
A well balanced business strategy should include having a well-formulated plan to manage business debt, have access to credit lines, maintain good accounting records, optimize your tax benefits, accumulate your wealth, and maintain the proper levels of insurance necessary to protect the business from risk.
Managing business debt can involve both long term debt and short term debt.
Managing business credit involves ensuring that your company has access to the right amount of credit to ensure that you have the slack in your cash flow infrastructure to enable you to weather any short-term liquidity issues. Maintaining a working credit line enables a small business to be able to maintain payroll and other daily operational expenses if cash flow tightens up temporarily. This provides enough breathing room for you to weather the w=storm and to figure out how to cure the underlying issue causing the financial crunch.
Managing and maintaining good accounting and financial records is important so that the entrepreneur can review his historical records to better plan for the future. Accounting is the language of money and businesses require money in order to survive. Knowing your historical trends better enables you to plan for the future.
Managing a tax plan will help keep tax tome from creeping up on you and you suddenly finding yourself surprised with your tax bill and then scrambling to figure out how to pay it.
Incorporating wealth accumulation strategies into your business plan can help ensure that both you personally and your business are building a solid financial foundation that can help drive the long-term focus of the business growth.
Maintaining proper insurance on your business can ensure that it is well-equipped to handle any crisis that comes its way.