Have you come across somebody who started a big business and before you know it everything disappearedand it became as if nothing ever started at all?
Doing business is not an issue but staying in business could be an issue when you don’t pay attention or take care of these 2 things which is discussed in this post. As you are here to learn what these things are, ensure that you will put a guard henceforth.
- Your Capital:
A capital is one of the factors of a business. There is no business without a capital, it is used to start and also maintain a business. Most businesses went bankrupt because the capital ran out. As you are looking forward to making your business succeed, whether you are into selling goods or you are a service provider, your capital must remain intact. A capital comprises of not just money but other resources used in carrying out the everyday operations of a business. It is the capital, when processed, that generates profit for the business. It was start-up capital that some businesses used to reinvest and today those businesses are large corporations.
- Your Profit:
In business, the income or revenue made from sales. It is paramount for a business to generate profit so that it can be sustained and even expand. Ensure that your capital returned along with profit after each transaction you make because when you do not make profits at all and you let it continue, eventually your capital will start to go down as well. And when this start to happen, you know what’s coming next. Bankruptcy! There should be an estimate of profit for every round of product you sell and keeping a written account would help you track your incomes.
In summary, the 2 things you must take care of to remain or stay in business are your capital and profit. A capital is not always money so, all of your assets and materials used in business are also among your capital and taking good care of them is very necessary in making your business a success. On the other hand, your profit is also as relevant. Make profit no matter how little it is if not your business can remain stagnant or even go down completely.