If you’re running a small business, sometimes it seems like the most vital aspect of it all is also the single worst to deal with. We’re talking, of course, about your finances. You can’t afford to look away from them. They don’t have to necessarily be too hard to deal with, either. From finding your funding to expanding your income, here’s how you tackle your money.
When you’re a small business who needs capital, you might think that getting any investor is a monumental opportunity. Make no mistake, it’s good to find someone who has the belief to finance you. But do they have the belief to keep supporting you? You need to find an investor who sees your vision, not just immediate profit. Otherwise, they may want to pull support well before you’re ready. Similar, make sure you know what you want from your investors. Do you want just capital or could a mentor be much more helpful?
Accounting like a pro
Getting your accounting setup is like pulling teeth for a lot of young entrepreneurs. But it doesn’t have to be all that difficult, after all. What Intuit recommends is setting up a checklist of different tasks. Daily tasks like checking your current cash. Weekly tasks like documenting and filing receipts. Then monthly, quarterly and annual tasks. Use these checklists to create a calendar for yourself. When you have it all spread out before you, it’s a lot easier to handle.
Part of dealing with money is finding ways to keep more of it, as well. It pays to know how and when to make cuts in your business. If you create a lean model now, it might mean you miss the more difficult cuts like getting rid of staff. Look at the supplies, suppliers and processes you use. How can you reduce the price or the amount you need?
If there’s something small business owners hate more than their accounting, it’s their taxes. For one, it can difficult to ensure you’re doing it right. You need to make sure you’re paying the right taxes according to the structure of your business. Then it pays to know where you can get cuts and exemptions. A lot of businesses use tax lawyers like MCC4Tax to point out where they could get a better deal.
Diversifying your income
When growth stops in a business, it’s time to re-strategize. As well as reiterating your current business model, it can be a smart move to look into new ways to acquire income. For example, your business could start a blog that not only provides content. It could provide marketing and link-building opportunities for other businesses. You can also consider selling your own experience and advice in seminars or downloadable ebooks.
Finances are all about getting your hands in and getting some experience. Once you’ve done your accounting properly once, that knowledge always sticks with you. So go stuck in and become a much better business owner for it.