Tips to manage your small business finances

Tips to manage your small business finances Knowing the state of your financial affairs back to front is one of the best ways to make sure the ca

15. Don’t wait too long before seeking a loan. An easy mistake to make is waiting until your business is in financial tr...
20/09/2023

15. Don’t wait too long before seeking a loan. An easy mistake to make is waiting until your business is in financial trouble before applying for loans or other credit. This is exactly when you will be least likely to receive financing. Consider applying for a business loan when your financials are still in a good state. This way the loan can be used for expansion or as an emergency line of credit instead of rescue.

14. Consider renting instead of buying. Leasing equipment instead of buying helps you avoid maintenance costs and can al...
20/09/2023

14. Consider renting instead of buying. Leasing equipment instead of buying helps you avoid maintenance costs and can also prevent you from overpaying on equipment only needed for a specific period of time. Also, consider renting your office space to make relocation and expansion easier.

13. Take control of your own marketing and public relations. Follow a PR and marketing strategy to make sure efforts are...
20/09/2023

13. Take control of your own marketing and public relations. Follow a PR and marketing strategy to make sure efforts are intentional and focused.

12. Take care when expanding. Make sure expansion is done steadily and wisely. Pushing large amounts of money into expan...
20/09/2023

12. Take care when expanding. Make sure expansion is done steadily and wisely. Pushing large amounts of money into expansions that are too quick and too drastic can be disastrous.

11. Don’t let legal fees get out of hand. A reasonable amount to pay per-hour for legal services is $450. How can you ma...
20/09/2023

11. Don’t let legal fees get out of hand. A reasonable amount to pay per-hour for legal services is $450. How can you manage this cost?

Make your expectations clear to your lawyer when procuring their services.
Choose the billing option that is the most cost-effective for your business, for example, hourly or per project.
Ask whether it is possible to defer payment until the project is funded.
For the more simple necessities, consider DIY legal documents. There are various services available online.

10 Keep travel costs minimal. Most hotel and travel costs should be spent on a place to simply lay your head at night an...
29/07/2023

10 Keep travel costs minimal. Most hotel and travel costs should be spent on a place to simply lay your head at night and a way to get from meeting to meeting. Don’t overspend on luxurious travel and accommodation. This sets a bad precedent for employees and can be an unnecessarily large cost with little return. Plan your business trips as if you were paying for them yourself.

9 Remain frugal. Even though you pay yourself, don’t get sucked up in the benefits of business ownership even if you can...
29/07/2023

9 Remain frugal. Even though you pay yourself, don’t get sucked up in the benefits of business ownership even if you can afford it. Set your salary as low as possible and offer government-mandated benefits only. What you save now will give you more flexibility in future lean months.

8 Make sure to pay yourself first. This doesn’t mean sucking up all the profit the moment you make it — start with 10% o...
29/07/2023

8 Make sure to pay yourself first. This doesn’t mean sucking up all the profit the moment you make it — start with 10% of the earnings. This is a good way to set aside money consistently and to test your business’s profitability. It also provides a safety net for unexpected expenses.

7 Use a business credit card. You’ll want a business credit card for making your business-related expenses. This helps k...
29/07/2023

7 Use a business credit card. You’ll want a business credit card for making your business-related expenses. This helps keep your personal purchases wholly separate from business purchases. Plus, some business cards may offer rewards for business-related spending.

6 Keep track of personal loans to your business. Keep accurate records of what you loan to your business. When your busi...
29/07/2023

6 Keep track of personal loans to your business. Keep accurate records of what you loan to your business. When your business starts making money, pay back the director’s loan first before paying tax on the remaining profit.

5 Keep a separate business bank account. Mixing business money with your personal finances is a recipe for unexplained l...
21/07/2023

5 Keep a separate business bank account. Mixing business money with your personal finances is a recipe for unexplained losses and tax-headaches. Keeping your business’s money separate will make gauging profitability easier and help you to keep proper track of your expenses.

4 Don’t get stalled on invoicing.Send out invoices as soon as possible after providing goods or services.Set payment ter...
21/07/2023

4 Don’t get stalled on invoicing.
Send out invoices as soon as possible after providing goods or services.
Set payment terms of seven days to make sure that payments are not forgotten or lost in the process.
Always follow up on sent invoices. Make this easy by creating set templates for email or SMS follow-ups.
Reference invoice numbers and cross-reference these with payments.

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