Focusing on Cash Flow
Instead of raiding your 401k or busting your piggy bank, experts recommend adjusting your business plan to take advantage of cash flow. By making business purchases from your profits instead of from your cash reserve, you can reward yourself more fully for growing your business instead of feeling the despair of making the wrong investments.
Cash is king in any small business. Therefore, hanging on to as much cash as possible can help your business survive through its first year. Instead of paying cash for a new computer, investigate some of the great deals on used or off-lease computers online. Buying a year-old computer can often put you at the same productivity level as someone with today’s latest model. Alternatively, consider leasing a new computer with the latest processor and the maximum available memory. Leasing keeps extra cash in your company coffers while offering significant tax incentives and other benefits, especially when compared to buying computers on unsecured credit.
Spending on Substance Instead of Flash
It can be tempting to treat yourself to a tricked out computer, a fancy new cell phone, and even a sophisticated website. However, small businesses that survive have mastered the art of purchasing only what they need, when they need it. Instead of renting lavish office space, consider converting a room at home or subletting a desk from an existing business. Instead of buying expensive furniture, you can often lease office furniture for a fraction of the price. Visiting thrift stores for desks, chairs, and filing cabinets can save thousands of dollars over buying new. Remember the distinction between the tax deductions you can receive for business purchases and the actual working capital in your business bank account.
Avoiding Work at Home Myths
Working in your pajamas or spending time with the kids while making money might sound tempting. However, the reality of running a desktop publishing business from home is just as challenging as working in an office. Successful DTP business owners create their own work spaces and enforce boundaries during office hours. According to many work-at-home parents, keeping spouses and children away from the office is one of the most important factors for success. Maintaining personal contact with clients and peers is also vital to your well-being, which is why many successful DTP professionals spend some time out of the office each day visiting contacts and attending networking events.
This post is part of the series: Starting a Desktop Publishing Business
Thanks to new technology, it’s easier than ever to launch your own desktop publishing business. Learn how to choose your niche, set your hourly rates, and avoid the most common pitfalls of a freelance graphic design career.
- Guide to Starting a Desktop Publishing Business - Setting Expectations and Testing the Market
- How to Learn Important Skills and Tools for Desktop Publishing
- Guide to Investing in Your Desktop Publishing Business
- Choosing a Niche for Your Desktop Publishing Business
- Different Phases of a Desktop Publishing Business: Moonlighting, Part-Time, and Full-Time