Manage Your Profits Correctly to Ensure a Sustainable Business

The first and most important thing that a business person should accept and realize is that the profit his or her business ventures generate, is not their income.
You should not use the profits of a company as your own.
For example if your business generates a consistent income of $5000 a month and you adapt your living expenses to this and live like a high roller, you put yourself and your company at risk.
If there should come a time that the business is struggling you might be stuck and be in financial trouble.
All businesses will have its ups and downs and because of this you are not responsible if you are living out the profits of your businesses.
You have to get a profit management policy or principle to follow, to ensure that you can build a sustainable business that would be able to handle tough times in the future.
One of the most important factors of building a sustainable business is savings.
You have to save enough money in your business to cover your expenses for at least a couple of months.
So that when troubled times come you are prepared and know that even if your business don't make any income you are covered and safe.
You should only take a portion of the profits for yourself.
Even better is to pay yourself a fixed salary from the company that is not more that 50% of the profits of the company.
You should not live above your means.
And in business if you are living on more that 50% profit of your company, you are living above your means.
To grow and to expand your wealth you have to invest.
A certain portion of the profit has to be reinvested back into the business or into another business that will generate more income.
You have to go and sit down at the end of the month and work out how you are going to invest your investment proportion to really make more money.
If this is done every month it will cause a snowball effect and your income will soon expand to levels you never dreamt of.
Then the last and most important portion is, the 10% of your profit that you have to give to people who can't help themselves.
This is a must.
You will receive what you give.
There is a very accurate and actually a very scary truth to this saying.
This is crucial and this portion of the profits is not yours or the companies' money.
Follow these rules and you will build a sustainable business for the future.
Learn to manage profit and you will be able to have less stress and be in a better financial situation.