Financials are what dictate the rest of the business, and plans for expansion and growth are inextricably linked to a company’s revenue stream and cash flow.
Here are 4 finance tips for small business owners to get you back on the right path and on to more success.
1) Prioritize Regular bookkeeping
It sounds so easy to let finances fall behind, doesn’t it? After all, you have a million other things to do that need your undivided attention. While that is most certainly true, do not let that become a constant excuse. Regular bookkeeping is incredibly important, as is checking in with your key accounting team to understand the viability of your business. In most cases, putting off these tasks inevitably leads to business blunders that could have been easily avoided, so get ahead of the curve and ensure you know exactly what is going on with your business and its finances.
2) Analyze seasonal cash flow
This is absolutely essential for any sort of long-term strategy goals you may have for your business. Understanding your seasonal cash flow and its effects is important for both short-term and long-term measures. You should be able to identify when your business tends to do well, and when revenue is slow so you are able to prepare accordingly. This is will also help you build a cushion for when growth is slow so that your business is able to float by during those times.
3) Leverage strengths to grow
Work to improve your limitations, but build on your core strengths. Use them as foundations, and allocate resources and revenue accordingly. Instead of wasting money and time on activities that do not directly benefit your business, invest wisely. Work to develop deep and lasting ties with those services and employees that help your business be as successful as possible rather than constantly looking for the next new thing.
4) Never be afraid to ask
Whether it is asking for a discount from a vendor, or simply reaching out to clients and customers – do not be afraid to ask, especially if finances are tough. Depending on the approach, many appreciate the honesty that comes with just simply asking.
The key is to try to stay away from being pushy or demanding, but having a frank conversation and taking things from there. It also shows that you are serious, and committed to working with what you have, and making that relationship better, which is appreciated by many.