If you’re a new business owner, one of the most important things that you want to concern yourself with is your finances. Of course, there are other things that may take priority for a while, but finances should always be in the back of your mind. Below we have some financial advice that business owners really shouldn’t ignore. Take a look:
Get An Accountant Right Away
Hiring an accountant right away makes sense. The types of tasks that an accountant takes care of are imperative to business success and stability, and they also take up a lot of time. Hiring an accountant for your small business allows you to delegate these time-consuming tasks and focus on what is really important to you. You’ll be able to enjoy more of a work/life balance. They can also help you cope with more than just tax returns – a good accountant will be able to complete and file the required legal and compliance documents for your business for you, too.
Keep A Close Eye On Your Numbers
Knowing your numbers is so important as a business owner. Below is what you need to be aware of:
- Cash flow
- Net income
- Profit and loss
- Price point
- Gross margin
- Total inventory
Change Your Mindset Around Money
Changing your mindset around money will help you in numerous ways. You might find that more money seems to magically flow to you. You might find that more opportunities simply open up to you. Without making sure you have a strong, positive money mindset, you might find that you make money only for it to leave you again a short while later. This can be down to our limiting, subconscious, long held beliefs. So long held and subconscious that we don’t even know we have them!
By taking the time to listen to your own self talk and how you feel about money in general, you should get a good idea of what you really believe. It’s up to you to then change these beliefs. Using consistent affirmations, meditations, and even techniques like CBT can help you to get rid of the old beliefs, almost ‘deleting’ them, and input the ones that you really want to be true. It sounds strange, but ask any athlete, business owner, or millionaire – mindset is everything.
Get A Business Credit Card
A business credit card will mean you are able to keep your business purchases in one place, especially in the beginning. This will help your accountant to no end, but you must make sure you’re paying off the card so you don’t end up with interest rates through the roof and debt up to your eyeballs.
Save Money On Your Equipment
Most start up businesses will need equipment, whether it’s computers, chairs, desks, or huge machinery. Save money on your equipment by looking into other options. Rather than buying outright at the start, leasing can help you to see whether a piece of equipment is really necessary for your business. Financing can help you to spread the cost. You can read more about those options here. You could also potentially save money on your equipment by buying second hand, which is both better for your wallet and for the environment.
Be a Greener Business
Being a green business in this day and age is crucial. Even small businesses can have a huge impact on the environment, so making sure your footprint is as small as you can make it is a must. Not only will you save the planet and save money, you’ll become a more desirable business, as so many people are looking to work with green businesses these days. Below are some pointers that can help your business to become more eco friendly:
- Use both sides of printer paper and only print when you have to
- Recycle ink cartridges and anything else you use in the office
- Buy used items
- Use recycled paper
- Change your light bulbs – but make the most of natural light during the day, too
- Have healthier snacks on hand and avoid anything using palm oil
- Encourage carpooling to work and even biking – you could offer incentives to make it more likely that employees will do this
- Make sure everybody is on the same page. Make it clear in the office that this is the standard everybody should uphold.
- Discourage plastic by giving free reusable bottles and having a water filter
- Make recycling bins prominent
Always Put Money Back Into Your Business
Don’t get excited about your first big pay check and go out and buy a BMW or an Audi to show off your success. Always put money back into your business so you can continue to improve and grow. Having an emergency fund is absolutely essential, as is being able to pay your team if you have a quiet month. Managing your finances and cash flow effectively is crucial – money is one of the biggest reasons that businesses fail.
Have An Effective Invoicing Process
If you don’t have an effective invoicing process, people aren’t going to pay you on time, if at all. In general, if an invoice hasn’t been paid within 90 days, the stats say you won’t get paid at all. This is why you should invoice promptly, and have a reminder system so that they don’t get the chance to forget.
Don’t Neglect To Invest In Yourself
Investing in yourself is also a must. As a business owner, it’s important to know that you will never know everything, and that there are always ways you can become a better leader, manager, or person. Always aim for growth in yourself and your business is likely to follow.
Work With A Mentor
A mentor can help you to look at things objectively, especially when it comes to making tough decisions in your business regarding money. Most successful entrepreneurs have a mentor – you just don’t know about them. Many people have help as they make their way to the top!