What percentage of business owners would say that their business is in great financial health? Perhaps 70%. Can you say the same about your business? A good start to financially secure your business is to compare business loans. An integral part of your business plan should be to improve the financial status or position of your business. Business advisers can help with financing needs and options. How can you improve your cash flow? An accountant may be able to suggest viable avenues for funding either internally or externally.
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Here are some ways to aid your business finances this year:
Selling assets
Do you want to reduce storage costs and get rid of unwanted stuff? If yes, then selling assets you no longer need could help you achieve that. The cash you get after disposing of such assets could be ploughed back into the business.
Increasing prices
This could be as a result of an increase in the cost of production of goods. Customers may not like it, but it is a valid option.
Using new marketing techniques
This won’t necessarily require spending more money. Smarter and cheaper ways like the use of social media can be used to convey your message.
Recovering outstanding debt
The less your outstanding payments are, the better. If you are very busy, you can consider outsourcing your debt collection. It is wise to have a condition of sale agreement so that your debtors do not accrue overdue payments.
Working overtime
Commit to reporting early and leaving late, even on weekends, so as to set things right. There are times in business when the plan is off course, so investing more time during such periods can help in getting things back on track.
Daily organisation
Time should be set aside to review each day at the close of business. By doing so, you will effectively monitor cash flow, hence facilitating the growth of your business.
Creating a financial reporting system
Establishing timelines for periodic reports is likely to guide you on how and when to grow. Profit and loss statements also give an idea of the financial position of your business.
Minimising your expenses
A tried and tested method of making more money is by reducing your spending. Look around for the best deals from suppliers and negotiate where necessary.
Looking for growth opportunities
If you’ve been having constant checks on your expenses and revenue, then growth would be your next agenda. Always bear in mind your financial goals and projections.
Alternative financing
Sometimes, landing into a financial crunch is inevitable. Don’t shy away from seeking alternative sources of financing your business. Your bank will help you understand your options better.
Keep track of your cash flow
For you to effectively plan ahead, it is essential that you know how much is coming in and from where, as well as how much is going out and for what purpose. If you can’t do it yourself, hiring a business accountant may be the best step to take.
When you are armed with the right tools plus the knowledge required to keep your business in perfect financial health, you are on the pathway to a more successful and fruitful business life.
Infographic created by Clover, a merchant services company
