Accounting is often overlooked. Even if finance isn’t your strong suit, it’s absolutely necessary that you have basic accounting knowledge down pact so that you can keep your small business afloat when times get tough. Starting a business requires diligence.
Payment Rewards and Incentives
Online and in-store payments be sure to mark-up your products slightly above your ideal margins so that you are able to offer discounts. Your customers will love getting more bang for their buck that way! When sending invoices to your clients, whether it’s digitally or on paper, you should offer some sort of incentive if they pay early. As long as you’re strategic with your incentives and discounts, it will surely boost your income margin rather than lose it.
Always have a contingency plan. A suggestion would be to have at least 4-6 months of runway cash on hands at all times. Every quarter you should be checking your reserves so that you know you can keep going for 6 more months. If you aren’t already doing this, I suggest you start now.
Some business owners just aren’t meant to handle their own accounting. That still doesn’t mean you shouldn’t know the basics, but it may be best for both you and your business to hire or delegate this task to someone to handle your everyday finances.
In almost every start-up life cycle, you’ll need to raise money some how and timing is everything. But when is the time right? Instead of looking angel investors or tradition venture capital that could take months, explore financing options. Always explore every option possible and do your research so your business never becomes stagnant.
As a small business owner, you carry the weight of your entire business on your shoulders. Your businesses financial health and stability is one of the main factors. Use these tips to better position you and your business for the path of success.
Be sure to visit the Bullfrog Small business insurance often for more tips on marketing, productivity and risk mitigation.