If you have an Internet business you should have a growth reserve account. In this short article we will talk about what that is and importance of it.
One thing you can never afford to do is eliminate advertising from your monthly overhead. This is a surefire way to kill your home business.
Most successful brick and mortar businesses have a growth reserve account that is there to carry them through the ups and downs of running a business. This is particularly important for small businesses that have payroll to meet and the profits are not always there every month.
The same thing is true with an Internet business. Because it’s competitive online, the amount of money you make may fluctuate from one month to the next.
A growth reserve account is simply an amount of money you can access at any time when you need it. You might go to your bank and set up a small business line of credit.
Having a growth reserve account allows you to stay calm when the income is not always there. The temptation to eliminate advertising, or other necessary business expenses, will be less if you have a growth reserve account to draw upon.
Some Internet marketers use the equity in their homes as collateral for a small business loan. Many Internet businesses finance themselves strictly by credit cards.
You may want to set up a separate credit card just for your business needs and use it to operate it in place of a growth reserve account.
However you choose to do it having funds available to ride out the ups and downs of an uncertain economy is important for every home business owner.
About Me: Kimberly Flores - Capturing the heart of the Adventure even if it is still in Dream Mode "Lets Make a Point To Leave This Place Better Than When We Came, One Life at a Time." Read more from this author