Bookkeeping doesn’t have to be completely awful. It can be easy. Yes, trust us… it really can! First of all you need to use a good and easy system to maintain your business accounts. After a lot of research and testing we recommend all our clients to switch to either KashFlow or Xero and use those systems to do the bookkeeping online.

Secondly, it’s all about the process and self-discipline. Keep your books up to date and avoid piles of receipts and invoices stacking up in the corner. Tackling books a little and often would reduce your fear and overwhelm when dealing with it. You can also employ an accountant to keep an eye on your records. This will be much cheaper than getting them to do it all for you, but you won’t have to fear making a mistake and being fined by the “tax people”.

Finally, realise why you are doing it. Bookkeeping is a wonderful practice helping you as a business owner understand where you need to reduce the expenses and how you can gain more profit. Bookkeeping is a core area of your business, it’s the blood pressure measurements of your cash flow lifeblood. If you don’t do it regularly you may miss the warning signals of your business running out of cash. As a solopreneur coach or consultant you would really want to avoid that at all costs!

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The cuts have been recently announced and many business owners still fear the recession coming back and how the cuts will affect their business. Will their customers be able to pay them? Will their cash flow stay afloat allowing them to pay their creditors? It’s pointless blaming the government or big banks though for what’s happening down your street and in your small business. Better let us all roll up our  sleeves and go make sales!

So how can we keep our businesses profitable in tough economic times?

Sell more to your existing customers – you have already created rapport, trust and proved your credibility to them. Use bundles when selling: as your customers decide to buy one product you can offer them another. You can also add low cost bonuses to your offer that have high perceived value – ebooks, member-only sites, consulting, e-reports, etc. And never forget about viral marketing on the Internet!

Create joint venture deals with other businesses and cross promote your products or services. You will reach a wider audience at less cost. Trade advertising with other businesses, find complementary products or services through networking. Start an affiliate program for your business. Less money on advertising, yet more guaranteed sales!

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1. Barter: try bartering goods and services with other businesses. You should try to trade for something before you buy it. Barter deals usually require little or no money therefore improving your cashflow.
2. Network: try networking your business with other businesses. You could trade leads or mailing lists thus cutting down on your marketing and advertising costs. You may also try bartering goods and services with them.
3. Wholesale/Bulk: you will save money buying your business supplies in bulk quantities. You could get a membership at a wholesale warehouse or purchase them through a mail order wholesaler. Networking with other businesses next to you can help reduce postage costs and share supplies bought in bulk.
4. Borrow/Rent: if you only need some equipment for a short period of time try borrowing it from someone or renting in a shop for a small fee.
5. Free stuff: researching sites on the Internet can help you find free software, graphics, online business services etc.
6. Auctions: online/offline auctions may offer better deals on business supplies and equipment compared with retail prices.
7. Plan ahead: make a list of supplies and equipment you will need in the future and keep an eye for big sales. Purchase everything before you need it while it’s on sale.
8. Negotiate: you should always try to negotiate a better deal before purchasing anything. Research a number of suppliers and have some figures at hand. Even if you don’t get a better price you may win something else: better payment terms, free add-on services, etc.
9. Search: never stop searching for a better deal of lower price and higher quality. You can use the results to approach your current supplier to start negotiations.
10. Reduce training costs: training can be very expensive. Offer employees incentives to pay for own training (or part of it) by giving them other perks like paid time off, additional leave, vouchers.