As with any successful business, the key to enduring success is proper money management. Once you start making profits, don’t start blowing that money on frivolous purchases, such as a new television or computer, a new car or home, etc. You may make some early profits, but you need to continue to ramp up your efforts to build a sustainable income online so that you can quit your day job and live off of your earnings . This will take time, no matter what industry or niche you are serving.
There are two things you should do with your early profits:
Regarding #1, just as with an offline business, your government takes a percentage of the profits you make. Depending on whether you are a sole proprietor or a separate business entity (LLC, INC, etc.), you will owe a percentage of your profits and have to pay that to your government. In a typical job, your employer takes a percentage of your paycheck for tax purposes. Being that you are also the employer as well as the employee, it is YOUR job to hold onto some of those profits to pay back to your government. Thus, never spend all of your profits, or you could find yourself in a financial bind when it comes tax time.
Regarding #2, just as with any industry, things change over time. No industry remains the same for long- we’ve seen this with the retail industry, the technology industry, the stock markets, and, yes, even with the Internet marketing industry. Some methods that worked years ago or even six months ago either don’t work or don’t work as effectively now as they did then. Yet, new methods are developed and new technologies are created to make the essential processes easier to manage.
Investing in such new methods and new technologies cost money, which is another reason you should not spend much to any of your hard-earned profits. You need to stay on top of the latest trends, strategies, and technology in order to keep your business moving forward and to keep it profitable. If you’re using outdated methods, your profits will quickly dry up, and your business will be teetering on the brink of collapse. If you’re not using the latest technology that is suitable for your business, you will spend more time doing tasks than is needed, which will take away time from tasks that can’t be as easily automated and where you should be spending more of your time in order to produce more profits for your business and for producing more credibility for your brand.
Thus, don’t fall into the trap of spending that hard-earned money on frivolous purchases- doing so will only cause problems for you later. Sure, it’s okay to feel good about yourself and maybe purchasing a little gift or celebrating with a special dinner out for making a decent amount of profits after putting in some hard work, but don’t go overboard with it and think you can just spend frivolously. You still need to think about the taxes you owe and the future education you need to invest in in order for your business to survive and thrive for the long term.