Starting a small business has a list of challenges all on its own, and one that makes the top of the list is more than likely money. From the collective experience of other small business owners, there are many ways one can give their business a financial revamp by a modification to their operations processes. On a smaller scale, there are some little things business owners can do in the day-to-day management of their business to improve their finances.
Below are a few practical tips; these are an everyday small action that one can take that will help them to manage their money more efficiently.
One does not have to turn themselves into an all-out couponer or bargainer to save money on ordinary business expenditures. When mail-in rebate offers for office equipment and supplies come in, follow through with them. Buy furniture or significant equipment used whenever possible and most importantly, go green to save money on utilities.
- Refresh accounting
Becoming a small business owner does not by default make one a master with money. One will still have to make large-money related decisions for the good of the company. Even if the company has a bookkeeper or an accountant, the owner should always know the basics of business accounting so they can keep track of revenue and funds themselves. It would be prudent to take an introductory accounting course, either online or at a community college if applicable, to learn the how monies move in and out of business.
- Accountability with Bills
The same one does for their personal finances, it is imperative that they pay their business bills on time.
A company credit card or loan payment fee can cost one immensely. Lates fee on utility bills or other vendor fees can create a bad name for the business. The same principle applies to taxes, and late taxes can cost one heavily in penalties.
Running a business can make one extremely busy, so if necessary set up reminders or ensure one has enough staff to see fit that late payment to whoever will never happen. For young and just starting a business, profit margins are already thin enough as it is, so do not take away from the already thin stream of revenue.
- Bargain with Vendors
Most of the time one will have to go the extra mile to find the golden bargain. When purchasing something from a vendor or setting up a contract with a supplier, always negotiate for a lower price and better deal. Vendors will more than likely budge from their original price all one has to do is speak up.
Important: Examine purchase terms such as payment penalties and grace periods before signing the dotted line.
One of the best ways to be best successful in business is by making a business plan and no matter what, sticking to that plan. Diverting from the plan is where many have gone wrong. Also, some have got so swept up in the excitement of it all that they did not spend their money frugally and would pay top dollar instead of negotiating. Do not fall into the same pattern of mistakes; buy cheap whenever possible.