As I am fully submerged in the water world for business, I constantly am looking outward for advice. It could be advice about marketing, or what kind of deals work, who to collaborate with, what to include in ocean lessons, etc — but the advice I need the most is financial advice. As a small business owner, there are plenty of seminars or videos or counselors that can help us out, but as a Swim Instructing and Ocean Safety small business owner, there are not that many. I wanted to share with you a couple videos that helped me keep my head above water comfortably, instead of sinking in debt!
The first one is Tom Ferry, as he explains how to manage our money properly. With my business, the checks come in at the beginning of the month, and for just a little bit, I want to be careless and splurge “because I deserve it.” He says this is not the best attitude, it is not wrong, but let us take some steps first. The best course of action is to divvy up the checks as soon as they come in.
Have multiple accounts that your checks go into for Personal, Business, and Taxes. Personal includes home payments, retirement fund, cash, etc. Business includes the business expenses. Taxes is about 33% of the incoming check.
Another piece of advice I found useful was that your marketing cost should be no more than 10% of your expected gross revenue. I was always unsure how much I should spend on marketing, and this gave me a solid number I felt confident in.
Here is his video:
The other video is has some advice for personal, but because my business is very personal to me, I use it! The best one he gives is, only buy a house when you are financially ready. Now this tip might seem mundane, or we have all heard it before, but I look at it more as, “Don’t buy stuff if you don’t have money for it!” This has been a quiet motivational push for me most of my life, if it was not in my budget, I did not get! If it is not in your businesses budget, be careful.
Here is the video:
I hope this advice helps all of us as we keep striving to grow our businesses, and be swimming in money!