A 2015 survey of small business owners shows that 76 percent would say that their business is in excellent financial health.
There are a number of challenging steps that come your way when you decide to have a startup; these issues range from the general structure of your business to staffing decisions. The financial aspect of starting your business, however, tops the list of factors that need to be considered very carefully and need proper planning and monitoring. There are steps to guide you in the better management of your finances so you can see your dream to its end, without succumbing to financial issues.
- Take the financial pulse of your business
It is critically important for every business startup to keep strict checks on the flow of its revenue. How much is coming in and from where, and how much is going out, and for what purpose? You can use do-it-yourself financial software to keep track of your company’s finances, but hiring a business accountant may be the best step to take.
While boosting your sales is one way to make more money, and equally, the tried-and-true method is to reduce your spending. The 2016 State of Small Business Report shows that small business owners planned on upgrading old equipment to be 38 percent of their overall expenses.
Also Look around to ensure that you are working with the suppliers who are offering the best deals. If you’re not, make the change even if it makes you a little uncomfortable. Also, don’t be afraid to negotiate with your long-time product merchants.
When starting a business, you need insurance in order for your business to stay healthy for the same reason -- accidents happen. Make sure that your business has the right amount of professional liability insurance, property insurance, workers’ compensation insurance, etc.
There is evidence that suggests that picturing being healthy can actually help people become healthy. You can do the same for your business’s financial health by envisioning where you’d like your business to be in one year, five years and even longer. Having a goal in mind can get you to where you’d like your business to be financially.
- Look at opportunities for growth
Remember the first tip? Having a check on your revenue and expenses? Keeping financial records? Those come in handy when you’re looking at opportunities for growth. Each year, analyze those financial statements with your financial goals and projections in mind.
- Seek alternative financing
Sometimes, even those with the healthiest eating, exercising, sleeping, and hygiene habits need a little bit of help in the form of vitamins and supplements. If you have unfortunately landed into a financial crunch or simply lack the means to continue your startup venture, you can apply for a loan from your bank and seek alternative financing.
If you’re Armed with the right tools, a plan for how to use them, and the knowledge it takes to keep your business running smoothly and in perfect financial health, you can now be on your way to a more successful and meaningful business.