One of the things that can kill a business is extra cash. This is not just any type of extra cash, but purposeless cash. Many businesses miss a huge opportunity to protect themselves, to invest for the future, or to celebrate by having specific fun expenses in the business.

This model actually comes from a book written by Alan Williams, Peter Jeppson, and Sanford Botkin, entitled Money Mastery. It works at a personal level but it also works at a business level where the business is paid first. Things such as savings, emergency allocations and long term investing are treated as expense accounts. When revenue is made, the savings account is paid as if it were a bill. As the business makes revenue, there is always savings.

Emotional allocation. In business, I advocate spending money on items that will provide a return on investment. However, I acknowledge there will be times that a business will need things for which there is no investment justification. Buy them with money in the emotional allocation account.

Emergency allocation. When things break, things happen, or things go wrong, an emergency allocation in your business allows you to be able to buy that piece of equipment that can save the day. This allocation allows you to be able to handle emergencies much better and not miss a beat.

Long term investing. Most small business owners are unaware that the business can buy investments. Speak to a tax accountant, you will find that there are really great synergies that exist from businesses starting other businesses.

Having an investment plan for your business is important because the business can begin owning assets. Given the right legal and tax structure (recommended by licensed professionals), you can actually begin owning assets in your business in a more tax efficient way then if you owned them personally. The liability profile on corporately-owned assets can also be managed differently. There are some limitations, but there are definitely synergies that are available to you if you are structured appropriately.

Begin to fund these three types of financial allocations for your business. As your business grows, you will find all three to be useful, and remember that you can always start small.
Do you have a professional goal that you are looking to achieve? At Confident Solutions Coach, we are offering a free coaching session for one lucky business person who shares with us what their goal is: whether it is a professional objective, financial goal, or goals for a company, we can help you.

This is not a goal setting theory session; this free business coaching session is to help someone create actionable items towards achieving the goal, gain an understanding of the obstacles towards goals achievement and how to overcome them.

To be considered for the free business goal coaching session, simply submit a video (3 minutes or less) regarding what your goal is and why achieving this goal is important to you. Post your video on the Confident Solutions Facebook Fan page by June 1st.

Author's Bio: 

Hugh Stewart is a business coach committed to helping those who are ready to move their business to the next level. His confident solution coaching will enable you to…

○ Cultivate a personal culture of change
○ Optimize how you spend your time and focus
○ Design workflow around your most profound talents
○ Develop masterful delegation and outsourcing habits
○ Work on developing and streamlining your work processes
○ Create the clarity, focus, action & results you deserve

You will discover how to...
• Master time and attention management
• Maximize income and rewards based on your best talents and abilities
• Hire and delegate effectively
• Develop business systems
• Create a sustainable and referable experience for your customers

The Confident Solution Cycle is a unique process that uses your current skills and abilities to achieve a clearly identified objective. The process serves to cultivate a personal culture of change and success with specific areas of focus listed above.