Entrepreneur:
Q: How does a small business owner set aside enough money to actually make a profit?
A: The key is having a budget and ensuring that your pricing model enables you to cover your direct and indirect costs, loan repayments as well as distributions to the owner.
Cash is King…work with vendors on extending payment options as well as have processes in place to get payment from clients in a more prompt manner (deposits, shorter time span upon completion of product/service).
Then the key is cutting expenses and owner distributions so that you can start to build a cash reserve.
Photo by Weblog.