Business, Enterprises, Co-operatives, not for profit groups etc… I implore you to ALWAYS make that little bit extra, that “profit” that “margin”, that bit on the end left over after EVERYTHING is paid for.

Here’s why… In tough economic times, those who can stand the test of time are those who put away for a rainy day, simple. Those with that “bit extra” can grow their business, provide more resources for their customers, give themselves more leverage and build an enterprise which is more sustainable.

I guess in an ideal world your “business” should be such others want to buy it, they covet it’s uniqueness, its service ethic and so on, to really do this you need to have the margin built in so the future of the business is assured, either for you or others who take it on as a franchise or as a “straight” business.

Know what your industry standard is for margins, then beat it by a bigger chunk (so you can have a greater edge in the long run.) It’s all about longevity, sustainability, offering the right stuff at the right time to the right customer mix… it’s up to you but a margin goes a long way to assisting you to be a business owner rather than a business operator.

A margin or cash asset can be the ultimate strength you need to borrow funds to grow with, and let the asset grow, let it provide other investment opportunities without having to spend it, let it be the vehicle to propel you forward ad give yo the edge. Most people when they get a profit spend it and enjoy the rewards (short term usually) that brings. I am advocating you put the money away and leave it away, watch it grow and provide the sort of stability every business needs.

Think carefully about the way you build your business and maybe you even have to alter your mindset/s about Cash and finance to be able to effectively put this sort of plan in place, no matter what, make sure you have a margin of some kind.