4 Tips For Effectively Managing Your Online Business’ Profit

The whole purpose of our website is to teach people how make money online. That’s what Vtrep is all about – making money online through video and content. Over the years, content creation and video entrepreneurship have all become extremely profitable career paths. With that being said, however, content creation is not easy. It involves sharing information, scripting, connecting with audience members and – when it’s all said and done – the whole process will require a lot of time to not only record and film, but also edit and share the content with millions of individuals online. The more people who engage with your content, the more views, comments, and shares you receive. This means going back to figure out what your audience likes, what they react to, and gathering information about what to create next. Content. Creation. Is. A. Cycle. 

We recently saw a podcast from H3 podcast highlights where they were talking about how much Casey Neistat makes – Check out the interview here: How Much Does Casey Neistat Make For a Sponsor? It made me realize that with popularity comes the need to build a plan for your online business’ profit. Are you starting a business? Or are you starting a hobby? Organizing this side of your business/hobby can not only structure the way you manage your money, but give you a better reference of how much you’re making or need to make, and whether or not you have a business, a hobby, or a brand.

Casey Neistat’s philosophy for content creation is pretty spot on – the financial element of your business is important, but you need to meet your branding and community exposure goals before building a plan to make money. Gaining followers is not difficult, but you need to have work ethic behind the scenes. If you want to start a business, be intentional and take the time to effectively create and share content that is valuable and relatable to your audience. Don’t worry about the money, if you develop your brand, the money will come. When it does, start to prepare for how you’re going to allocate the money. Here are the four tips that I can give you for implementing a successful and profitable strategy to grow your business beyond just a hobby:

Set Achievable Goals

As an online entrepreneur, it’s imperative to outline a variety of key factors that will build your profit and the exact measures you want to take in order to achieve this growth. It might sound too simple or unnecessary, but writing down your goals before implementing them is proven to ensure you achieve them. Having a hard copy of your business ambitions can also provide you with a brief outline to reference during the process of crafting your money management strategy. If not on paper, a desktop and mobile note app will work just fine as a convenient method to utilize as well. Your goals could involve a budget breakdown, a way to manage cash flow, or a helpful way to delegate your finances on a level of importance — monthly, quarterly or annually.

Separate Your Business and Personal Budgets

In some cases, your personal budget and your business budget can be created and managed in entirely different ways. But what can make things even more confusing is if your finances for each intermingle or are connected within the same checking account. My bookkeeper killed me for this when we started our business. When I went from a freelancer to a business owner, my entire mindset had to change. As an online business owner, it’s essential to devise a plan for how you’re going to manage your profit, and this might entail the use of multiple debit or credit cards, or an additional checking and savings account. If you’re interested in keeping your business expenses under the same bank account, ensure that whenever you are completing a transaction that it all falls under the same statement. If not, certain payments or deposits could end up falling under the wrong account, giving you an inaccurate representation of your business finances and goals. Trust me, this is a nightmare when Tax Season comes around. Although if this does happen, you can get tax advice from a credentialed income tax preparer using online video chat technology with TurboTax Live, and you can do so right from your home in Oakland, Fort Worth, Philadelphia, or anywhere else in the United States.

Use Budget Apps and Cut Costs!

Your smartphone is a tool that you use on a daily basis. It can accommodate access to alternative platforms that monitor your business’s goals. Along with a personal finance tracker like Mint or any of the other mobile budget spreadsheets, try using internet compatible tools can help you maintain a budget. The best advice I can give you is to use an online banking app that is separate from your personal bank. They can provide an easy user experience and a factor of convenience; being able to access your bank account information on the go versus an in-person bank can increase work flexibility. We use PayPal from our end and then deposit our money to our bank. I lose a bit of money, but it works. This brings me to another tip, try to find a bank with no fees to help eliminate overdraft fees, service fees, and foreign transaction costs that can add up over time. There are a few of them, pick one that works for you. The main thing here is to find a way to minimize your initial costs of doing business. If we make $10 from selling photos or videos, the last thing you need is for a bank or credit card processor to take a chunk of that money.

Finally, Invest Smart

When it comes to using a third-party software or additional tools, such as a camera or computer for your online business, you want to make sure it’s an investment that is needed to move your business in a positive direction. What you purchase is going to have an effect on the content you produce and the budget that you build. It may be necessary to start small when it comes to deciding on your investments, to ensure you’re not cutting into your profit margins from the get-go. How you manage your entrepreneurial success will change with time as you gain exposure, and when your online presence increases, you’ll start to earn more money as well. This cash can be used to invest in better materials needed for more efficient and higher quality content which will give you more money, which will buy you better equipment, which will keep the cycle rolling. My first computer was from Wal-Mart’s clearance isle… my latest PC setup would make any professional gamer jealous.

Ruben Roel

Ruben Roel is a Marketing Professional based out of Dallas, TX. He is the Executive Editor for Vtrep. Fluently speaks digital media, small business development, and search engine marketing. Ruben can be reached via email: editor@vtrep.com