Since the objective of every business is to make a profit, entrepreneurs want a financially stable business. Starting a business requires an investment that is a complete loss until the business begins making revenue. Many times additional investments are required before profits are earned. Entrepreneurs must constantly evaluate their financial position to determine the steps needed to make their businesses financially stable.
Financial stability is achieved by effectively planning the income statement and cash flow. The income statement lists all of the expenses you must pay. When you total the expenses and add your desired profit, you can compute the amount of sales needed to make that profit. Planning cash flow allows entrepreneurs the opportunity to pay for purchases of assets with a minimum of borrowing. The objective for any financially stable business is to pay each bill on time with revenue generated by its business operations.
Although planning and projecting financial statements is essential to the building of financially stable businesses, your business must provide a quality product or service that customers are willing to purchase. We are familiar with several online businesses that appear to be overnight successes. Amazon.com, eBay, Google, reputation.com and may others. Each of these businesses offered unique products or services that attracted customers.
Reputation.com began in 2006 as ReputationDefender focusing on helping parents protect their children’s reputation from embarrassing posts online. Adults soon recognized the value of their services, and cofounder Mike Fertik extended the service to cover businesses. The name was changed to Reputation.com in 2010 to denote a proactive service rather than defensive.
As a proactive service, reputation.com has developed software that protects the privacy and reputations of their clients. When false or misleading comments are found about one of their clients, reputation.com asks the offending party to remove the posts. Another technique generates favorable comments so that negative comments are forced to the bottom of Google searches.
Reputation.com has patented software that generates scoring systems to identify consumer information and reputation scores. Other patents involve sentiment analysis and privacy protection. Bloomberg Businessweek recognized reputation.com as the best online reputation management service in February 2012.
Reputation.com has maintained a steady growth since 2006. They are successful because they have planned their finances, provided and improved their services, and built their own reputation with quality service. They have recognized and used the keys of success in building a financially stable online business.