Business money management can be the most important factor in a thriving small business. When you understand the best ways to use and protect your money, you can succeed. We have compiled these seven tips on how to manage your business finances to help you maintain and even build on your financial triumphs.
1. Focus on Delivering
Small businesses often stay small because of minuscule customer bases and niche markets. When you cease to deliver the products your customers expect from you, or you fail to broaden your potential customer base over time, you may see serious stagnation in your business.
The most important thing for any business (large or small) to focus on during times of change, stress, or even prosperity is keeping what they are selling. In other words, never let the pressure of the times stop you from making sure your customers get the products or services you offer as soon as they need them.
2. Get Online ASAP
Whether you are a plumber, a baker, or make your own vape juice in your garage, you must have an online presence. Whether that means a website, social media profiles on all the major platforms, or a combination of each, your potential customers have to be able to find you in an online search.
Even if you have no clue how the web works or what to post to your social media accounts, it is critical you find someone who does. Many companies offer social media management for a small amount of money each month that can turn into huge sales for your company.
And remember: when people visit your site or profile, be sure to have a way for them to either order your products (through an e-commerce store) or sign up for your services.
3. Make Sure You Have Access to Cash
When your business is just starting out, you may need funds to get through each month. Many businesses take as long as 6 months or even a year to get in the black financially, so don't feel bad if things are going a bit slow to start.
Or if your business has been active for decades but has hit a slow spot (seasonal businesses especially suffer during predictably dreary sales periods), you can still benefit from ensuring you have access to proper funds.
Through online personal loans from lenders like Atlas Credit, you can find the quick and easy money you need to cover utility bills and inventory and pay it back based on your preferred schedule.
4. Monitor Your Business Expenses
Do you know how much you are spending on your business? Not only do you need to stay within your budget, but you also should keep track of your expenditures for tax reasons. Successful small business money management includes tracking every expense, no matter how small.
You can find software that will automatically track your expenses if you connect it with your business bank account. By separating your personal and business transactions, you will have a clear record of what you are spending. You can also balance this with what you have coming in from clients.
5. Cut Costs Where You Can
Another advantage of tracking your expenses is that you can see where you spend money that is not necessary. For example, perhaps you pay each month for social media graphic design software to promote your business. You can probably find this service for free or even do it yourself.
Other things that may be able to save on for your business include:
- Printing paper: Do everything electronically instead of printing it out, if possible.
- Soda for guests: Forego the soda and offer bottled water to customers. It's usually a lot cheaper.
- Advertising products: While some marketing products may be useful for getting your company name out there, many people eventually end up tossing out things like branded pencils or keychains.
6. Never Slack on Quality
What your customers want from you most, and what will spread word about your business better than any advertising campaign, is a commitment to quality. If you fail to consistently deliver the same (or higher) quality products and services, your business is as good as dead.
See your competitors offering lackluster services or poorly produced products? Dedicate your time and energy to doing better. Keep only the best people on staff, and opt for the higher quality materials for every product you offer. Your workmanship and craftsmanship alike are critical for keeping your business respected and your customers coming back for more.
7. Be Careful About Business Credit Cards
One trap many businesses fall into is the business credit card. While it's definitely true that a business credit card can help you out of a tight situation in a given moment, the debt you can rack up as a result of regular use can quickly turn a profitable business into a money sink.
Our advice: if you have a business credit card, use it only for the biggest emergencies imaginable. For all other expenses, try small business loans, personal loans, or pulling from your own funds as a business owner. Pay down your credit card debt ASAP and focus on making enough profit this year to never worry about the necessity of debt again.
For more information about the awesome personal loan services provided by Atlas Credit, head over to our online loan application page! You can also find a location near you in Oklahoma or Texas and stop by our office.