February 16th, 2012, 11:19 AM
How to take out profit from expanding business
I have come to a strange situation in my life. I have been doing a business for the last 3 years. I have increased my business size much more than what I started for example, I started by buying credit from companies and pay them after three months in installments. Then my purchase capacity was only one lot a time.
Now I am buying all cash from many companies. My purchase capacity is 4 lots a month now.
Currently, I am branding my products, and working on extending and expanding the business. The problem I am suffering from is that I am always hand to mouth. I don't have money to buy a few good shirts however my cash flow is huge.
I am expanding which of course needs more money, so I guess my all profit is going in investments. But I am confused. Am I doing right? because for the last three years I have not taken out any money from my business for personal tasks, like buying a car or property. Sometimes I think I am working for nothing. Is it true or what I am doing wrong or is it normal?
I want to know whether I am a loser or a winner or just a sucker lol ... please share your wise words.
February 16th, 2012, 04:38 PM
The first thing that you need to do is figure out what action you can take to reduce the amount of money that you are borrowing. As a guess I'd say that's what's causing you the biggest problems.
However... If you are really concerned and want to find out what is possible, spend the money and go to a properly licenses financial planner that specialises in business, and they will be able to help you out and show you what can be done. Asking for advice on the internet (even here) will only ever get you advice that's at best vague and at worst completely useless to your situation.
February 23rd, 2012, 12:47 PM
Its always good to consult another brain... I spoke with my ex MD who has been an entrepreneur for the past many years. He gave me fantastic lines. They are very logical, make good sense and I am satisfied and convinced with them.
BTW, I don't borrow anything from nobody. I am able to move my wheel myself. The only problem is savings. Otherwise cash-flow is huge.
Anyway, thank you for your suggestion