guests engraved on them were affixed. “The promotion was a big hit, and we eventually hosted a dinner for all of the patrons that participated and gave them membership cards that provided them with various perks and amenities,†she says.
In the future, Suggs and King plan to parlay their money management and budgeting skills at the new restaurant. “Utilizing the same strategy and financial resources that made us a success in New Jersey will ultimately make us an even bigger success in North Carolina,†Suggs says.
How They Did It
Suggs and King offer their advice for managing their personal and business finances. Among their tips:
Reinvest in the business. “We constantly put profits from the business back into the business,†Suggs says. Using profits to enhance the décor, add new entrées, and sponsor special promotions helps them keep loyal customers.
Add a unique value above and beyond the core product. By doing more than just the basics for your customers, a business can establish a customer base that regularly patronizes the business.
Make money by being creative. Provide special promotions and giveaways that will attract customers and encourage them to bring others to the business. This should bring a steady cash flow for the business.
Save up cash reserves. Although having good credit is important when applying for a business loan, having free and clear collateral is critical, Suggs says.
Let technology help you. Shop around for software that will track your business expenses and personal expenses separately and accurately. Never commingle business income and expenses with personal resources. This can lead to financial disaster on several levels–especially at tax time and when determining whether the business is making money.
Pay yourself a modest salary. Determine how much you need to live on each month and pay yourself that set amount. Don’t live extravagantly just because the business is doing well. Live below your means and always be prepared for emergencies.