Last Updated on Feb 28, 2020 by James W


Understanding how to spend money wisely for the development of your online business is vital to the success of your company. Just as with any business, cash flow is critical and very important. It does not matter if you have the best business model possible. If you squander the funds that you gain as profit from your operation, your success is in jeopardy.

Before you start operating, you should set specific goals for your online business. Those goals should be supported by clear, complete yet concise company policies. This principle is vital, even if you are operating alone, operating with a few people, or have grown well enough to be considered a medium size business.

If you have not sat down and put the goals and policies for your company, do so before you spend any money on further development. Once that is done, you should make sure you have a plan for putting aside cash savings for at least three months known operating expenses. You should also be saving an equal amount for unexpected costs.

Each month, you should add to cash savings before you pay other expenses of the company. The amount you add should be according to a plan you develop. The sooner you have those savings, the safer the future of your online business will be. Funds available after normal operating expenses and payment into your cash savings plans should only be made if the expenditures for business development meet the following tests.

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Does your planned expenditure support your company policies? Are the developmental costs you want to incur going to help your company meet its stated goals? If you can answer yes to both of those questions you can be fairly confident in spending funds for development of your online business.

If you have more than one type of development expense, but not enough funds to do more than one at this time, do not take funds from your savings. Those funds are for normal operation and emergencies. You might put the developmental funds you have available at this time into another stash of cash, until such time as you have the funds to proceed.

If the development you plan can be seen to have an immediate impact on revenue or cash flow, you could consider using a portion of your savings that are for unplanned expenses. Never take funds from those savings meant for future operational expenses.

Author Bio

Anis Emitez is a young blogger  at and student born in Italy but  resides in morocco Marrakesh, he likes soccer a lot he’s a faithful fan of inter Milan soccer club which has won several trophies, i never miss any match of their games.


Founder and chief editor of Blogger, Affiliate Marketer, Tech and SEO geek. Started this blog in 2011 to help others learn how to work from home, make money online or anything related to business and finances. You can contact me at