Dave Thomas

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Don’t Put Your Small Business in a Precarious Financial Position

Dave Thomas

February 17, 2017

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What keeps you up at night in terms of running a prosperous small business?

In most cases, the item that causes you to lose sleep is finances.

Knowing that your small business is financially solvent can keep even the best of business owners awake at all hours of the night.

Despite all their good intentions, they find that maintaining a healthy financial outlook can be challenging at times. As a result, they’re left to wonder at times if their business will in fact be around for the long haul.

So, what are you doing to avoid putting your small business in a precarious financial position?


Avoid Getting Hung Out to Dry with Customer Payments

Maintaining a healthy small business can prove tricky at times, especially when the overall economy is not as robust as many would like.

So that you do everything possible to stay in the black financially, remember a few pointers:

  • Customer transactions – Depending on the setup you have regarding customer transactions, some customers might pay you at the time of the transaction (cash, credit card, check etc.), others may get billed. No matter how you handle it, making sure you are in fact getting paid in a timely manner is critical. Just as customers have their own bills to maintain, you also have your share of bills for both your business and your personal life. Now, if customers aren’t paying you on time, it can become real easy to fall behind on your own payments. When that happens, you suddenly are thrust into financial anxiety. One problem many small businesses run into is when customers renege on wanting to pay for something. Although it can be they honestly had a change of heart with what they purchased, others will use this tactic for fraud, hoping to get away with getting stuff for free. Either way, you’re the one who suffers. With Verifi chargeback prevention, you can take away the financial fear of losing out on countless sales, not to mention all the potential chargeback fees. Such prevention also allows you to keep taking charge card payments, something you might otherwise lose;

  • Growing at the right pace – One of the challenges many small business owners face is to know when the best time to grow truly is. For instance, you’ve been running your small business for several years now, so is now the time to expand it? That can be a difficult question to answer, especially given that the economy has been rather unpredictable in recent years. On the flip side, you do not want to miss out on a chance to grow your business, one day regretting that you did not take the opportunity when you had it. So that you do not put you and your business in a precarious financial position, jot down the pros and cons of expanding at this time. If you have even the slightest doubts, chances are now is not the time.


What’s in Your Best Financial Interests?

  • Smart planning - Finally, do regular assessments of how your small business is spending money. One example would be on supplies. Do you look for the best deals possible or just buy in terms of convenience? From computers to printers and much more always spend some time looking to see where you can obtain the best deals. Another example would be what you’re paying in terms of office space rent. Would it be better over time to have more of your team working from home? What about having a 10-hour/4-day work schedule? By doing that, you could close the office three days a week, ultimately saving the company money. By always looking for ways to save your company some green, you will have a much better chance of staying in business for years to come.


As a small business owner, what are you doing to save your company money?


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