How does a small business owner set aside enough money to actually make a profit?

min read
Opinions expressed by Entrepreneur contributors are their own.
The key is having a budget and ensuring that your pricing model enables you to cover your direct and indirect costs, loan repayments as well as distributions to the owner. Cash is with vendors on extending payment options as well as have processes in place to get payment from clients in a more prompt manner (deposits, shorter time span upon completion of product/service). Then the key is cutting expenses and owner distributions so that you can start to build a cash reserve.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur