Running your own business is not without challenges. You will need to stay up to date with the regulations in your industry, and improve your own productivity. Whether you work from home running a one-man band, or have employees, you will need to make sure that you are always ready for an audit and can conduct a reality check. From business intelligence to financial records; there are several details you need to keep an eye on to succeed in being self employed. Find out more about the important information you need to keep track of.
1. Income and Outgoings
To be prepared for a tax review any time, you will need to record your income and outgoings. If you run an online business, you can simply download your PayPal transactions and put them on an accounting software. If you would rather create your own system to record your business costs and invoices, you can get in touch with a Specialist Excel consultancy to create a custom system that gives you a full overview of your finances every time.
2. Main Revenue Sources
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To identify the most profitable activities and customers in your business, you need to also calculate the profitability of each project or work you take on. If you spend twelve hours on editing a product portfolio and get paid 130 dollars, your hourly rate is not impressive. You might want to avoid this type of work in the future, or adjust your pricing. Without being aware of which projects and customers are the most profitable, you cannot make continuous improvements in your business and implement positive change.
3. Running Costs
You must also track regular running costs, such as rent, internet bills, and hosting. Without this, you will not know how much you have to make each month before you break even. There are several great cloud computing apps to allow you to track your daily and monthly running costs.
4. Training Schedules
If you have employees or freelancers, you need to make sure that you support them through training and development opportunities. Get a schedule and check when they are due compulsory training or updates. This way, you can keep your business reputation high, while complying with regulations.
5. Website Rankings
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If you have a home business you are running on the internet, your website rankings will determine your profits. You need to invest in analytics software or check Google Webmaster Tools to keep an eye on your competition and own rankings. The internet changes every day, and you cannot maintain your first page position without putting in hard work and effort. You will have to make adjustments to your search engine strategy as soon as you see your rankings drop, to remain competitive and keep on receiving free traffic from search engines.
Business intelligence is one of the most valuable assets. You need to start gathering information and data to identify development areas and opportunities. Learn to manage and analyze databases, creating reports and graphs, so you understand what takes your business further in the long run.
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