Are you a business owner or a hobbyist?
When you start your business, you have to think about the money. It is a tough subject to discuss and too many entrepreneurs aren’t realistic about the monthly expenses. Many of them don’t understand cash flow, they don’t have a spending plan, and consequently they are constantly worried about money. UGH, this quickly puts a damper on how you feel about your business.
But you are running a business – it is NOT a hobby! So you have to work on your financials, create a spending plan (budget) that is realistic and stick to it. You can’t donate to every charitable cause that comes through the door. You can’t give people a big discount or donate your service or product for free, because “you will get so much business from this” – NOT ALWAYS TRUE.
I am not saying that you can’t offer a discount, if some profit stills reaches the bottom line. But when you give away your goods and services you become easy pickings for all of those organizations that want stuff for their auctions, raffles etc. Rarely will you see a return on you donation.
I know this sounds like the Grinch, but years of experience have shown me that you need to take care of your own business first and donate when you are established and can afford to do so.
If you feel you must donate, make it small the 1st year and see what happens. Set a spending limit and stick to it. Then you can judge your donations for the following year. One company I work with does gourmet cookies, and schools and groups come to her all the time wanting freebies. We had to set a maximum amount of donations by $, to make it work for her. There are material costs and labor costs, so for everything you donate, it costs you money. When you establish your donation level, then you can honestly say – “we have reached our level for donations for the year”, check with us next year.
And if you are donating a service – it is still costing you money. If you donate something that takes 10 hours of your time, you are losing 10 hours of income. So please treat your business like a business and not a hobby!
No Obligation Discovery Session
Let’s talk on the phone for 20 minutes to discuss your current situation.
There is no cost or obligation.
I call it a “Discovery Session” where I can learn more about your goals and objectives as well as tell you more about my expertise and how I help my clients.
At the end of our Discovery Session you will have a better idea of my experience, what I do, and how I can help you and your business grow and thrive!
I look forward to speaking with you!