Running a business: how do you make money as a small-business owner?

Written By Steps To Faculty Published May 31st, 2010

Making a business run effectively is only part of the problem when you have a new operation; the other part of the equation is finding a way to turn your venture into a cash-generating vehicle. It is never easy, and this article doesn’t pretend it is, but making money as a small-business owner can be done following a few steps.

Step 1 Cut out the extraneous costs

The first thing you need to do is to budget conservatively, over-estimate costs, and cut out the extras that drive up those costs. Thus, if you are running an operation, you need to ask yourself if you need the latest personal computers in the office. As well, you have to ask yourself if your logistics chain is the most efficient possible and if it is costing too much to distribute your product. Finally, if you are buying wholesale from someone, you need to look around to see if what you are buying is being driven up by middlemen costs; if it is, then you need to look elsewhere. And, of course, if you can get a worker for less money to do the same job, the reality is that cutting labor costs is one way of cutting expenses overall.

Step 2 Do as much as you can by yourself

Clearly, doing things in-house is beneficial for the bottom line. For example, if you pay an accountant to do your taxes, maybe you can learn how to do the books yourself so that you no longer have to pay that accountant. As well, perhaps there is a task that you have always relied upon a contractor to do – like fixing machinery in the shop – but maybe you can learn how to do these repairs yourself, or maybe you can pay for an employee to learn the necessary skills at a lower rate than a private repairman would charge. In the end, when you do things yourself, you prevent yourself having to rely upon other businesses that look to make money off your ignorance.

Step 3 Give a kid a hand

Making money in business sometimes means giving a young person a hand up when they are looking for summer work or an internship. For example, there is no harm in giving a young apprentice plumber a shot at handling any leaks you may have; there is likewise no harm in giving a young accountant an internship or co-op placement for the summer so that he or she can learn about the job at a cost that will save you money. Working with local community colleges or even local universities can allow your business to become a great placement location for youngsters who are not going to charge you an arm and a leg.

It is hard work, but you can make money in private business; what you really need is to have a business plan that cuts down costs so that more money flows into your pockets. The way to do that is simple: cut out the extras; do what you can by yourself; and give a young person a shot at some job experience.

Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.