Dave Thomas

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Make It Your Business to be Financially Savvy

Dave Thomas

August 03, 2016

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When you opened your small business, what did you expect to be your greatest challenge or challenges over time?

For some small business owners, it was likely being able to run the show either all on their own or finding the money to hire help. Others, meantime, likely looked at being able to do the proper advertising and/or marketing to get their brand noticed. Still others probably looked at if there would be enough hours in a day to accomplish what they needed to.

That said do you ever feel at times (maybe too often) like your cash flow is your biggest obstacle, not to mention the item that keeps you awake many nights?

If so, the time has more than come to make sure you have the financial reserves to not only keep your small business running now, but for many years to come.

So, have you made it possible where you are to the point that you consider yourself financially savvy, especially in running your business?

Know Your Financial Needs

So that your small business has the financial health necessary to prosper for many years to come, make sure you have these bases covered:

  1. Financial backup – You never want to see your company’s financial health dip into the red, not to mention stay for some time to come. That said you may find yourself in need of fast cash for your business, especially if you are going through some slow periods of sales. If that is the case, it is important to locate a reputable merchant services company, one willing to get you the cash advance you require to keep your business stable and ultimately growing. In looking for such a provider, be sure to find one that does not hit you with costly maintenance fees and/or application qualifications that are all but impossible to meet. You also want a provider offering flexible times for repayment, thereby not putting you under the gun to pay back the money;

  2. Prudent spending – It should be commonsense, but your spending habits while running a small business can’t ever be taken for granted. From ordering office supplies to where you decide to advertise and market your business, make sure you can justify all your spending initiatives. For instance, many vendors will offer you deals if you buy in bulk, be it office paper, folders, mailing supplies etc. Also do your best to buy things when they are on sale. If you work out of your home office, you can save money right there by not having rent to pay on an office space etc. If you do rent out an office space, look to save expenses on items such as electricity. You could consider having the office closed on weekends (many companies do just that), along with shortened hours on Fridays. You may also be able to work out deals with vendors where you reimburse them with your services instead of financial compensation. Anything and anywhere that you can save money, do your best to do it;

  3. Hiring help – In the event you do hire help for your small business, you might be able to bring on employees in a part-time capacity, thereby saving money on expensive items such as health insurance coverage. With health insurance being such a contentious issue the last few years, you want to make sure you research it as much as possible before offering it to your workers (be sure to follow up on federal guidelines indicating when you must offer it etc.). Also consider the idea of using interns from time to time. They gain valuable experience in the working world, while you can avoid paying salaries you would have to for regular employees.

While those are just a few tips to keeping your small business financially solvent, there certainly are others.

The key to being a successful small business owner is knowing when and how to save money, along with understanding when you require financial assistance.

When it comes to the latter, be sure to research any and all financial providers before signing on with one of them.

At the end of the day, keeping your business in the black is not a choice, it is a necessity.


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