How to know if you have a profitable business?

How to know if you have a profitable business?

How to know if you have a profitable business?

Every entrepreneur dreams to have a successful and profitable business, but how to really know that yours have both? Keep on reading this article as we will help you finding it out.

“It is very important to make sure you are developing a really profitable business in all aspects, if you are being able to help others, if your business is expanding and you are getting financial profits, then you are doing it right”, advised Salomon Juan Marcos Villarreal, president of Grupo Denim.

Here are some important aspects that will help you find out if your business is really profitable:

  1. In order to know the profitability of a business it is not only necessary to know the difference between your incomes and your operation costs. It is important to know that the profitability also involves what you will be getting for the investment you make when you begin your business. You do not only need to know the difference between making a product and selling it, but also must consider how much investments you need to start running that product.
  2. The opportunity cost is a really good view for an entrepreneur who is decided to start a project of his own. When you want to know if starting a business will be profitable, you must consider how much it will cost you not to start it, consider that although a job is a good source of incomes, it might be really costly.
  3. You will also need to know how profitable your business will be once you analyze the risks. If your initial investment is low, the risk of losing will be low, but the chances to have interesting profits will also be it. Please be careful on this point, if you are getting a business project where you need too little investment to win too much money, you might want to check on it a couple of times before you decide to start.

“You can have a really profitable business if you are well informed, if you are determined to go on, no matter what, and if you are patient enough to see the results you are seeking for”, said Salomon Juan Marcos Villarreal.

Managing your money responsibly

Managing your money responsibly

How to manage your money responsibly?

Has it ever come to your mind that with just a little extra income you could do more? Sometimes it is not enough with a pay rise or an extra income if the problem resides on a bad administration of your money. This article is dedicated to give you some interesting tips that will help you managing your incomes responsibly.

“It is important to administrate your resources at home and within your company, this way you will feel more secure and will protect your family’s wellness”, advised Salomon Juan Marcos Villarreal, president of Grupo Denim.

If you want a better management of your money, put these advices into practice:

  • Make a budget – It should be honest, put on a list all of your expenses without exceptions. This will give you a better idea of how you are managing your incomes.
  • Debts – Make a list of all debts you have and prepare a payment plan, once you have decided to get rid of all of your debts, it is important that you do not buy anything on credit, as this becomes a vicious circle.
  • Savings – By limiting your expenses, you will be able to make savings. Determine a part of your budget to your monthly savings, you can start with a low percentage and once you get rid of your debts you should increase it. It is very important to have a financial backing.
  • Pay in cash – You will realize how less you spend when you pay in cash than when you use a credit card.
  • Expenses – If you are determined to manage your money in a more responsible way, you will have to start by getting rid of those unnecessary expenses that exceed your incomes.

“There are many practices that can help you managing your incomes in a more responsible way, it is just a matter of determination and a consciousness”, added Salomon Juan Marcos Villarreal.