Tuesday, March 18, 2008

Step 2 ~ How Money FLOWS

(Click to review the INTRODUCTION and STEP 1 ~ Self-Employed Home Business Basics)

Okay, you've covered the
basics, so now it's time to create a framework for your business. MONEY is the energy (green energy!) that fuels your business and your life. And just like a river, this energy requires some type of structure to be able to FLOW.

That's why we think it's helpful to have a FLOWCHART type of diagram. You create a flowchart to show how $$$ will come into and flow through your bank account, thereby nourishing your business! This flowchart will soon become the basis of your Daily Operating System, and will be used to determine the Statistics you will compile to Manage Your Business. As your business evolves, you can update your flowchart as needed.

There are 3 simple components to create a structure to support the flow of money in your new business:

SET-UP: A business address (or P.O. Box) for business mail; a business email address; a separate phone number; you may also need a toll-free number.

OPEN UP: A business bank account for your money to flow through. (Note -- when you open your account, be sure to take your assumed name/DBA and optional EIN# if you got one ... see
Step 1 for information.)

DRAW UP: A business flowchart that illustrates the specific money flow in your business. To complete this, you need a general sense of what's involved in reaching potential customers, receiving payments, and the production and delivery process for your product/service.

Want an idea on how to put together your money flowchart? You can download our generic FLOWCHART as an example to follow ... click here to get yours!

In the FLOW,
Devin & Maria