FINANCES

Whether you’re an entrepreneur who launched a business this year or a longtime self-employed professional, the end of the year is a crucial time for gauging the financial success of your micro-business. It’s also a critical time for deciding how to manage your profits so you give your company—and yourself—the best financial advantage.

“It takes money to make money,” the old saying goes. But in today’s tight credit climate, getting the money needed to grow and expand a business has become difficult, if not nearly impossible—at least from traditional financing sources like banks and private investors.

The greatest business risk many owners face may be standing right in front of them: employee fraud and embezzlement.

“It’s not what you make, but what you keep.” While it’s not clear who first uttered these words of financial wisdom, anyone who’s been in business for any length of time can attest to their accuracy. Sales may be great, but business success ultimately hinges on your ability to earn a profit.

As a micro-business owner you don’t have to accept the opening terms from suppliers or even demanding clients. Instead, continually look for ways to create transactions that are mutually beneficial to you and the other party.

Thousands of micro-business owners and self-employed professionals rely on contracts with government entities for a significant portion of their annual revenue.