Y
our Money
Many businesses will have problems
in the first few months because the
o
wner runs out of money. That's why it's
important to know what you want to
accomplish before you start, so you know
how much money you will need to
accomplish your goal. It's important to
know how much money you are spend-
ing each month, and how much money
you are going to make each month. If
you're a big company you probably use
some sort of accounting system to keep
track of this for you. The question is how
often do you look at your books and make
changes necessary to increase your prof-
its. Running out of money is a result of
poor planning.
Goals and Objectives
In your planning process create goals
and objectives for your business. Break
d
own goals and objectives by quarter – in
other words, identify all of the things that
must be done during the first quarter, the
s
econd quarter, the third quarter and the
fourth. Look at the things I listed above
and make them some of your goals.
Measure Goals and Objectives
All too often, once a business starts
operating, the owner becomes too busy
in the daily operations to take the neces-
sary time to assess the progress of the
business. It is fine to establish opera-
tional goals and objectives, but you also
have to measure how well your business
is performing against those goals and
objectives. Measuring against the identi-
fied goals and objectives will tell the
owner whether or not changes are neces-
sary. Keep in mind that you goals can
change based on business activity. That's
ok, that's why it's important to monitor
your business operations monthly.
Watch Your Cash Flow
There is an old saying in business
"Cash is King". None holds truer than in
towing. It's important to know where you
are making your money and where you
are spending your money. That's why
monitoring cash flow is extremely impor-
tant. It is really as simple as this: if you
continue to spend more money than you
Volume 4 • Issue 2 | www.towprofessional.com | Tow Professional 21