• Look at the bottom line. The motive to make money is a basic and honorable one. There is nothing wrong with being honest about it. After all, the financial possibilities of this profession are one of the major reasons you have entered it. Make sure you operate your business at a profit and keep a close eye on your bottom line.
• Generate sufficient income from production. All your income will come from sales. As we saw in an earlier unit, sales are a result of productive activity, and activity can be planned and managed. Make sure your activity and production objectives will support your income goals. Later in this unit, we will see how your Chart Your Course for Success & Business Records, Activity Planner, and Weekly Activity Report & Definitions will help you establish meaningful goals, as well as manage your time and activity.
• Operate at acceptable expense levels. Income is important, but so is profit. Profit is what you have left once you've paid the bills. Positive cash flow is when there is more money coming in than going out. Controlling expenses and managing cash flow can make the difference between a profitable and unprofitable operation, especially for a new business with an uncertain income stream. Business expenses are part of doing business. However, managing expenses is essential for maximizing profits.
• Make sure expenses will provide the expected returns. Spend money to make your business profitable, but first, weigh costs against the anticipated benefits. For example, don't invest in a GPS or cell phone with all the bells and whistles unless you spend a lot of time on the road and need it to keep scheduled meetings, call clients, and keep in contact with the office.
• Make sure any expenses help you work more efficiently and effectively. For example, if hiring part-time clerical help will free you up for more sales calls, that's an expense that can make your activities more efficient and effective.
• Keep records that provide necessary documentation. The only way you'll know if your business is profitable is by keeping records. Your record keeping system should be simple and accurate. You don't want to spend an inordinate amount of time keeping your records up-to-date when you could spend that time more productively prospecting or making sales calls. Your Activity Planner and Business Records also help you keep track of mileage, entertainment, and other monthly expenses.

In addition, a record keeping system should allow you to:

1. Provide for quarterly cash flow projections;


2. Compare projections to actual profit and loss figures; and


3. Periodically determine the net worth of your business (assets minus liabilities).