Page 32 - Paulisms: Gold Nuggets for Small Business

1.12 Personal account
Don’t use your personal account to run money though for the business and then try and sort later. Yes, I have seen that. Set up a separate bank account for your business. Keep business as business and personal as personal. If you blend the two, it will create an accounting nightmare to sort it out later, for example, what transactions are for what.
1.13 Making money
‘You can afford to make money, but you cannot afford not to.’
A business has to make money. You can afford to make money, but at the point when you are not making money, the business will stop. You need to get into a mindset that every day you need to make money and must know where you are at. I have had businesses that I should have pulled the pin on years earlier, but I hung on, waiting for it to turn. Not making
money is also energy-burning, as you fight to find money to pay the bills. Remember, you can only go on for so long not making money... there is
a finite!
1.14 Good versus bad debt
Be mindful of the difference between good debt and bad debt. Bad debt is the flash cars and motor bikes you buy when all of a sudden you have this thing called ‘cash flow’ that you have never had before. Tempting! You get