When people think of starting a business, they usually focus on developing a good business idea, making market studies, and learning more about their target audience. There’s definitely nothing wrong with doing these but, if you’re planning to set up your own venture, take note that these are not the only things you should do. If you want your business to grow and prosper, you also have to know how to manage its finances properly. You can start by taking these steps:
Keep your expenses low
Even when you start to make money and earn a large income, it would still be useless if you have sky-high overheads. So, before starting your venture, look for ways to get it off the ground without spending too much. For instance, instead of renting an expensive office in a prestigious commercial building, why not look for a cheaper space? Or, if it’s possible, work at home so you can avoid paying monthly rent and have more funds for your business’s other needs.
Learn to ask for discounts
Another way to cut your costs is to ask for discounts. For example, if you’d like to use a certain software but it’s too expensive for you, why not email the founder and ask if you could get the software at a discounted price? It might seem embarrassing at first, but you’d be surprised at how many businesses are eager to give discounts to attract new clients.
Partner with other establishments
Still another way to keep your business costs down is to team up with other entrepreneurs. For example, if you’re starting a bridal gown shop, you can pool your marketing funds with a florist and a caterer and print out leaflets, brochures, and other marketing materials that feature all of three of you. This way, you can advertise your business and reach out to your target market without spending too much.
Tackle bookkeeping tasks ASAP
It’s easy to procrastinate when faced with accounting and bookkeeping activities, but remember that these tasks won’t finish themselves on their own. Unless you work on them steadily, they’ll keep piling up until you’re faced with a mountain of work that takes a long time to complete. To avoid this scenario, divide your work into chunks of tasks that can be tackled in 30 to 60 minutes. If you really can’t stand doing finance work, hire a small business accountant ASAP instead of waiting for tax season to come around.
Make sure you get paid
Extending credit is a great way to attract clients and build customer loyalty. But you have to realize that it’s also dangerous, particularly if you won’t get paid. So, if you decide to extend credit, make it a point to remind clients (either through calls, email, or SMS) about their due dates and the exact amount they need to pay. Make regular follow-ups before the due date and, if it passes without any word from your clients, give them a call to know when they can make their payment.
These are some of the business finance tips that you should always keep in mind. To learn more about running a venture, look for experienced entrepreneurs who can provide you with the support and mentorship you need and help you create a strong and lucrative venture.