It is obvious that business is about managing money. You'd be surprised to know that majority of Online Businesses, web developers, designers, advertisers and bloggers cannot manage money. This is probably one of the biggest reasons why web 2.0 sites go after funding the VC firms look into management and want to see a manager with at least MBA running things.

Managing money is about what you can, cannot and should not buy. Just because you have money doesn't mean that you should spend right away. Sometimes the biggest mistake a starup makes revolves around spending money at the wrong time towards the wrong thing.

Managing Money is about being smart and thoughtful with money, here are a few ways to be smarter with money

Expenses

No matter who you are or what you do you've got expenses whether you like it or not. Being smart with money would allow you to analyze your expenses, take out the unnecessary ones or bargain for better deals. For example, there are hundreds of options for having a cell phone plan, but researching a little about you talking habits allows you select the most appropriate plan that over time saves you money. You can apply this to cars payments, office lease, Internet and tv bills, computers equipment, starbucks coffee, lunch and dinner.

Employees

If you are working on your own then you are your own employee and not your own boss. If you are in the online business and you're making money then the chances are that there multiple employees working in that company. Most startups, as soon as they come in contact with money they go crazy with hiring thinking that the same money they're making this is going to continue to next year and year after that. Not so fast, in the online work you can be on top one months and at the bottom by years end. Never estimate or speculate when it comes to online. Keep you team small, and hold on tight to your money.

Hosting

Hosting can be very cheap or very expensive, but did you know that it doesn't matter what kind of hosting you start with for as long as it is flexible enough to grow as you grow. If you have a blog, or thinking of starting one, think for a second what is your blog going to be, if it's a hobby blog then a cheap shared hosting with $5-10/month hosting is good enough, but if you intend to really promote the site and make a bit of income on the side while holding your day job then stay away from shared hosting and go with a small Virtual Server for $30-50/month and as the traffic to your site grow so can your server resources this way you don't have to spend more that you need.

I know a few startups that before they even had a decent application on their hand they were going around shopping for servers and co-location options. As a startup stick with small, go with a small Virtual Server, this way if you hit big you can easily upgrade to fully dedicated servers and multi server with load balancing options but don't blow the money you don't have right from the get go, what if you're doesn't pick up at all, all that money wasted!!!

Marketing

Every business, website or blogs needs to be marketed otherwise how would people find out about it. But did you know that in this day and age the most effective marketing doesn't actually cost a penny? all it costs it time! in the next article i will be talking a great deal about this.