Running a small business is no joke – it can be quite challenging at times, and often it appears that there’s always a problem lurking in one corner or another. Statistics prove it: roughly only 1 out of 10 start-ups make it through the first year. It’s difficult and it’s stressful – but it’s also very rewarding.
Moreover, there’s some very good news: it doesn’t have to be that hard if you only have the discipline and wits to keep 5 simple rules in mind. The application of these 5 simple guidelines will make life a lot easier for the beginning entrepreneur. Have you ever wondered how you can ensure your plans stay on-course? Here are the top five things you can do to stay on top of your business’ finances.
Figure out your budget
It’s a lot easier said than done. Whilst it seems like a straightforward proposition, preparing and planning your budget is often harder than it appears on paper, because there are sure to be some unexpected events that throw you off. It’s better to be conservative with your
sales estimates whilst setting more aside for unanticipated costs. However, once you figure out the budget, try
to stick with it. Don’t pour more money into your business unless there are very good reasons to do so.
Eliminate the bad flow
Try to eliminate expenses and avoid late payments; look into invoice factoring or negotiate easier payment terms with customers in case you have delayed receivables.
Stay within your limits
Everyone needs credit now and again, but keep it as small as possible; credit has a way of destroying a business if handled unwisely.
Accounting software saves time and money
There is some brilliant software on the market that will make your accounting practice much easier and efficient. It’s an excellent investment. You can also benefit from the expertise of accountants (particularly when it comes to keeping accurate records and settling taxes and requirements), such as the accountants central London from GSM & Co.
Keep it separated and up-to-date
Don’t mix business and pleasure – especially not when it comes to your accounts, and make sure all your accounts are always up-to-date. It requires some discipline, but it ensures you understand the state of your business at all times.
Here’s another thing you have to look into: funding options. It’s usually a sore spot with beginners, because with starting a business from scratch comes a certain pride, so it’s often hard to let some of the ownership (and management) of the business go. However, if the business is really kicking off and the promise is there, it would be silly to let the enterprise go because of funding problems. If you can find like-minded people to invest, it may be the best thing for your business and everyone else involved.
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