You need money for all the little and big things in business.
Even if you are not earning 5 or 6 figures as income in your business yet, you should be able to count on it as a stable income generator.
Well, the success of your business highly depends on the stability of the income it can generate – this is a plain, hard truth you have to count on!
So let’s see how you can run a financially stable business.
Don’t put all your eggs in one basket
This is one of the commonest advices you can hear about making money blogging.
At the same time this is one of the commonest mistakes that most bloggers end up making.
To be honest, for many bloggers who start blogging with a dream to make it an online business – the thought of money making usually ends up monotonous.
They think linearly. However, with blogging money making is a multi- dimensional thing. You cannot just think in one direction – if you do so, you could be able to make some money. But there is no guarantee that the income will be stable.
You have to think in multiple directions so you make the most out of your time and effort you put into your online business.
For instance, if you are into Google Adsense ads, and if one fine day, Google cancels your Adsense account because some crazy person did fake clicks on your ads – your income is gone.
If you are into Amazon affiliate marketing and if Amazon changes their rules slightly you could see a huge drop in traffic and income.
Not just with money, even with traffic (which of course, is related to income) – if you are relying on one particular traffic source, you could be sadly surprised any day.
A small or big change in Google algorithm, a roll out of a new feature in a social media platform, withdrawal of a service by some big company that you rely on – all these could potentially affect your traffic and income.
Therefore diversify as much as you can so you don’t go bankrupt with one small change by someone!
Don’t spend on unnecessary stuff
There are shiny objects everywhere. Especially online!
Whenever you are encountering a little difficulty with doing a task in your business, there are hundreds of tools, software, online courses or an e-book to help you out.
But do you need all of them? Some promise you a silver bullet, some promise you an instant solution and some will tell you to push their magic button.
You need to pause before you go out and buy something that looks useful to you.
Usually most of the stuff you buy in a hurry or on impulse, are useless.
I always give myself 24 hours to make any purchase. I wait for 24 hours and then I decide to make a purchase.
After 24 hours, if I have the same urge to buy that product, I go ahead. Else I simply drop the idea!
I end up NOT buying 90% of the stuff I decide to buy 🙂
Money not spent is money saved.
Review regularly and see if you can cut on recurring costs
Recurring expenses are a slow killer. They won’t seem obvious as expenses, but they will silently rob you off.
Now, don’t jump ahead and cancel all your subscriptions. There are very crucial and useful subscriptions that are needed for any business.
However don’t be blind with your recurring expenses. You might have signed up for something hoping to try it out for a few months.
But then you would have totally forgot about it. Similarly, any free trials you sign up for that ask for your credit card details might charge you after the trial period.
If you are too busy to pay attention, you might be paying for stuff that you don’t actually use/need!
Save up smartly
You should absolutely have a savings plan for your business! The more you save, the more stable your business is.
No matter how much you have to spend on your business, you must be keen on saving a set percentage of your income.
This is not at all hard, if you plan it accordingly and if you spend in a disciplined manner.
Every bit of money you save will add up to become a backbone of your business. I have such saved up money as backup – in case of an emergency.
I also have some in fixed deposits that I cannot take whenever I like. These kind of savings are your biggest savers at times of crisis.
With a little bit of planning and discipline, it is not at all hard to run a financially stable business. No matter how much you earn, make your business financially stable using these tips.