Thursday, May 26, 2011

Business Spending

One main thing that I have learned about running my own business is to be really careful when spending money. When I first started I knew nothing about marketing or what stock or equipment I would need. Therefore I bought all sorts of things which I did not need. I thought that it would be okay because I could claim the tax back when I did my tax return. However, I made no profit for a few years so didn't pay any tax and therefore could claim nothing back. Unfortunately this made me start being the opposite in that I bought hardly anything. I bought a very cheap notebook computer because it saved me money but found that it was very slow. In fact it was so slow that it slowed me down in my work and was inefficient. It is therefore important to think hard about purchases and do not be afraid to make them but choose carefully. For example when contemplating purchasing new POS systems, think about the advantages and the disadvantages of them. Will you be able to make the money back because of all of the advantages that they will give you. It is impossible to know but you should be able to make an educated guess.

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