Thursday, December 13th, 2018

The Do’s and Don’ts of Making Money

By Ellen Rohr on Jan 24 2011 • Filed under Money

The do's and don'ts of Making Money.

In my previous post, I gave you the secrets to Business and Balance, which also covers a few key leadership tips. In this post, I'll reveal my best tips for making money:

Making Money! Financial Must Do’s and Mustn’t Do’s

  • DO understand that you are in business for the MONEY.
  • DON’T be ashamed about that.
  • DO run a balance sheet, income statement and cash flow report every week! Once a month is NOT enough!
  • DON’T trust industry averages for budget and performance comparisons. If most businesses stink, and they do, what can you learn from industry averages?
  • DO base your selling price on YOUR costs of doing business.
  • DON’T pay any attention to what your competitors are charging. What do they know?
  • DON’T forget what you really sell: TIME and KNOW-HOW.
  • DO remember that the know-how takes time to deliver.
  • DO track billable hours. It’s the variable with the most impact on your financial position.
  • DO create a line item in your budget for “customer satisfaction costs.” Allow 1-2% of total sales.
  • DO understand that the proper selling price is the first and most important step in making more money for yourself and your employees.
  • DON’T spend money on marketing, uniforms, new trucks, computer systems, and new employees until you have raised your prices to cover the new costs.
  • DON’T call me if you are convinced you can’t raise prices in your neighborhood.
  • DO call me if you want to discuss how to do it.
  • DO learn about real estate: 8 out of 10 self-made millionaires have significant real estate investments.
  • DON’T forget you live in the most fortunate time in history. This is a renaissance age. What are you waiting for?
  • DON’T forget Warren Buffet’s rules for business. Rule #1: Never lose money. Rule #2: Never forget Rule #1.
  • DO grow rich in a niche.
  • DO something NO ONE else does and charge a LOT of money for it.
  • DO pay your employees much better than anyone else.
  • DON’T forget that there is more than one way to make a living.

In my next two posts, I'll give you the secrets to Sales and Marketing and Getting Things Done, or you can check out my previous post, The Do's and Don'ts of Business and Balance.


2 Comments

  1. Hi Kookie,

    Great! Congratulations on your new handwoven bags business. Keep us posted of your successes and challenges. There is a lot of help here at http://www.entrepreneurialwoman.ca 🙂

    xo$ Ellen

  2. Thank you for your “tips”. I am from the Philippines. I started a homebased business selling handwoven bags and I do need all the advises I can get.
    Thank you and best regards,

    Kookie

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