I blogged the other day on how to be an innovator the other day in order to take advantage of ideas to push your business to the next level and control more of your business future. I read a post today along these same lines but more of a personal finance nature. You can be the CFO of your own life and it will do great things for you. I really like the post which is why I writing about it here. If you read the post and thing about what J.D. is trying to impart to you then you can see you really also need to do this type of money management in your IM business.
Iâ€™m amazed of how many times I read a forum post or in chat with another IMer people donâ€™t really treat this as a business. That may be the reason of why 95+% of most IMerâ€™s will fail to obtain their goals. If your intent is to become wealthy at the IM business and you are not keeping accurate records then this needs to change. Treat your IM business like a business. Make sure you record every transaction concerning your business whether that is a debit or a credit. Not only will you need this for tax purposes, but it also allows you to create reports that will help you to determine the exact state of your profitability.
You can use a variety of programs for this purpose from Microsoft Money or Quicken to QuickBooks Pro(which is what I recommend as QuickBooks is a true accounting application for your business). If you are not making money or very little in this business then you donâ€™t even need one of this programs. You can setup an Excel spreadsheet that can help you to track your expenses or if you donâ€™t have Excel then sign up for a Google Spreadsheets account and use it. Does not really matter what the application you use to track your business state the important thing is that you actually do it.
Once you have a method for determining your state of profitability you will have better information with which to make purchases of IM products to help grow your business. Purchasing some products is great for your business and will help you grow it quicker, but lets face it there is a lot of junk out there with out-dated methods that no longer work or do not work as well as the creator claims. When you are first starting out and if you are still negative in this business then your first task should be to build your business to the point that you are now growing a positive cash flow and building long term equity in your business in the form of your knowledge.