When you are in business you can only operate if you have sufficient money to pay for the goods and services that you need to produce goods and services. If you put money into your business make it count! Ask yourself in spending that money what will be the outcomes.
Spending can be classified in other ways:
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Short term spending … 1 month and its gone
These are items you need to operate. Examples include telecommunication costs, hosting plans, the costs of where you are conducting business. They can vary with the size of the business you operate. Advertising campaigns. Products
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Medium term spending… 12 months and its gone
This may include items such as subscriptions to services you need such as aweber, zoom, learning systems, accounting products, cellphones, computers, networking, services!
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Long term spending …. What you spend you always have
Mindset, the brand, website (you will still have to maintain it as a short term cost), knowledge.
Spending behaves in different ways to:
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It is fixed and may not always reoccur
This may include Incorporation costs, registering intellectual property, finance application fees, business planning fees.
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It is fixed but stepped with the size of operations
This may include telecommunications, hosting plans, website, learning systems, loan repayments. It is variable and depends on sales. This may include outsourcing graphics, copy writers, costs of social media campaigns.
The above lists are not exhaustive but my point is to determine what the costs are and plan out how they will behave when you are planning your business!
Andrew Elphick
One half of the Anywhere Business Team NZ
