Notice fast and slow seasons.

You might find you have periods where your business does very well and periods where it doesn’t. Take note of when these periods are. It can be good practice to put some money aside in fast periods to cover you for the slower periods.

Don’t overestimate your net income.

Even if business is booming, costs will pop up that you didn’t anticipate. When you’re figuring out your budget, it’s a good idea to look at the numbers rather than rely on an estimate.

Keep an eye on cash flow.

Make sure that you’re not spending more money than what it makes. Make sure you know what is going out and on what. If you’re not sure what a transaction is, make sure you follow it up.

Set prices based on the competition.

At the start, you may not know what you should charge for your product or service. Make sure you have done your competitor research and set your prices based on existing market prices. While you want to keep your costs low, you don’t want to lose money as a result.

Think wisely about what you’re spending money on.

When you’re deciding to purchase something, ask yourself “Do I actually need this?” Take a no-frills approach and cut back on unnecessary expenses. Make sure you’re buying things that you need for the success of your business, rather than ‘stuff’ that projects the image of success.

Don’t be afraid to adapt or pivot.

It’s easy to fall into patterns and not look at alternatives. But if something’s not working for the company financially, acknowledge it. This is referred to as ‘pivoting’-changing up some part of your business model. Maybe the market has shifted, or your customers want something different.

Establish good relationships.

Make sure you pay your bills on time and chip away at company debts. Also make sure to maintain working relationships with key partners, as this will encourage them to continue doing business with you in the future. Don’t take credit unless necessary and look for other alternatives beforehand.

Manage and minimise risk.

Being an entrepreneur involves taking risks, but you can still make wise choices. Have a ‘plan B’ for if something goes wrong. What happens if your manufacturer shuts down, or you lose your biggest client? There are other steps you can take to protect your business, too. These include buying insurance, investing in cybersecurity, and keeping your financial statements up to date.