Hey, Community! You know we share all things small business here in this space. I have another article for you today that came from the
QuickBooks Blog. It talks about
learning financial lessons. That's always a good thing to learn more about so let's take a closer look:
- Realize how to use debt wisely.
It has been drilled in our brains that debt is bad. And that for that most part is true if you're not careful. However, you can also work debt to your advantage. For example, professionals in the real estate investing industry will make a purchase, go into debt, work a few projects to sell the property, and ultimately make their money back and then some. Leverage is key.
- Resist the temptation to go overboard with spending.
This point is pretty straightforward. As mentioned in the article, Will Smith once said, "We spend money that we do not have, on things we do not need, to impress people who do not care.” Make your budget and stick to it like glue.
- Find (or create) opportunities to earn passive income.
An example given in the Blog posts mentions setting up a subscription service. Doing so creates a steady flow of income. This is known as passive income that you can expect month-to-month.
- Expand your services or products to grow.
Do you ever feel like you've hit a plateau? Like you just can't break through to see an increase in profits? Chances are you may be in a saturated market. If that's the case, rewind a bit and think of ways to diversify your business. "Perhaps you could add a new service to your lineup. Maybe your products could undergo a feature refresh to drive traffic from different sources?"
These are just a few lessons to improve your business finances. Take a look at the link above for the full article and even more info. What financial lessons have you learned as a business owner? Let's hear it in the comment section! Have a great day!
