Separate your money from the business's money
It's the first and most important step. Open a separate account for the business, even a basic one, and receive your payments there. Avoid paying personal expenses with that money.
This separation shows you the real performance of your business.
Record all your sales and expenses
Note every income and expense, even in a spreadsheet or notebook. With a consistent record, at month-end you can see what came in, what you spent on and what the profit was.
Make it a habit to write things down at the end of each day.
- Date and amount of each sale
- Purchase of supplies and stock
- Shipping, packaging and advertising
- Fees and service payments
Pay yourself a salary
Set a fixed amount you pay yourself from the business each month and don't take more. That way the business knows how much it must generate and you learn to live on a budget.
If the business can't cover it yet, start with a percentage of profits.
Build a reserve fund
Set aside part of every sale, even a small one, for emergencies, restocking or slow seasons. A cushion lets you make decisions without pressure.
Review your numbers every month
Spend an hour a month reviewing income, expenses and margin. Spot unnecessary expenses, unprofitable products and opportunities to raise prices.
This review is the basis of any growth decision.
Having organized finances means having control of your business. Separating accounts, recording movements, paying yourself a salary and reviewing numbers monthly gives you real clarity.
Start today: open an account just for the business and write down this week's sales.