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Personal Finance Mantras Every Small Business Owner Should Swear By

Personal Finance Mantras Every Small Business Owner Should Swear By

Money is the primary gauge of your success as a small business owner.  If your focus is centered on enhancing your value offering, creating a new value proposition or another component of business aside from money, it is time to partially pivot toward the financial side of the enterprise.  Follow the tips detailed below and you’ll find your financial situation improves, setting the stage for you to scale your business as quickly as possible.

Recognize the Importance of Cash Flow

Most people are surprised to learn cash flow issues are one of the primary reasons why small businesses fail.  Insufficient financial management including a lack of focus on your company’s cash flow will end up undermining your operations in due time.  However, as the owner of your small business, you are empowered to improve cash flow management.

In short, cash flow is the aggregate sum of money going into and out of your small business.  A litany of factors including pricing for products/services shape cash flow.  Fail to properly price your goods/services and you won’t have sufficient cash moving into your business.  If you were to overprice your products/services, your sales would decline and you wouldn’t generate enough cash.  Find the happy medium in the context of prices and your cash flow will steadily improve.

You can also enhance cash flow with the right billing strategy.  There is no excuse for leaving cash tied up in invoices that clients have not paid.  Such “in limbo” cash will reduce your company’s liquidity, possibly making it difficult to make payroll and honor your overhead expenses.  Consider implementing discounts for clients who pay ahead of time.  Even a 2% discount for a client who pays bills in two weeks or less will motivate them to pay early and bolster your small business’s cash flow that much more.

Create a Budget

Above all, a budget is necessary to ensure your bottom line is in the black as opposed to the red throughout the entirety of the year.  Develop a detailed budget at the outset of the year and amend it on a monthly or quarterly basis as appropriate moving forward.  Setting and sticking to a budget will be that much easier if you create a checking account specifically for your business.

Your budget will empower you to track revenue and expenses, meet goals, and forecast your available cash for spending in the months and quarters ahead.  Your budget can also be used to establish an expense cap and revenue line, ensuring your small business always has sufficient cash for operations.

Consider a Payday Loan

If you are struggling to make financial ends meet and want to keep your business humming along, consider the merits of a payday loan.  A payday loan provides you with the liquidity you need to cover your financial shortfalls and keep the business operating.  Payday loan debt consolidation will prove particularly helpful if you have high APR loans.  Eliminate those costly short-term loans, get out from beneath the dark cloud of high-interest debts through loan consolidation and you’ll emerge from debt with a bright financial future.  A payday loan settlement eliminates punitive fines, late fees, egregiously high APRs and those pesky finance charges for good.  Enroll in this consolidated program and you will have two years to repay your loans.

An added bonus is that payday loan consolidation reduces interest rates to the point that you are empowered to save money on a monthly basis, reinvesting it directly into your small business.  You won’t spend a second worrying about latent charges, ultimately making it that much easier to pay off your debt without compromising your small business’s operations and bottom line.

Eliminating your payday loans through a consolidation program is centered on a customized plan.  Your individualized payday loan settlement reduces those absurdly high APRs on all outstanding loans, injecting an infusion of cash into your business through the grouping of individual loans into a single monthly payment plan.  This approach ensures you only have one monthly payment to make in your quest to return your small business back to profitability and growth.

Focus on Financing Your Small Business’s Growth

If you can successfully grow your business in a reasonable amount of time, the influx of revenue will help you cover overhead financial obligations, repay creditors, and scale your business for success.

Redirect your available cash to finance growth through investments in technological innovation, product/service enhancements, and the addition of “rainmaker” employees.  Continue to scale your enterprise, capturing more market share with each passing day and your small business’s bottom line will improve as time progresses.

Plan for the Worst and Hope for the Best

Whether your business is struggling to hit its stride or operate like a well-oiled machine, it is in your interest to create an emergency fund.  Add money to your small business emergency fund each month and you’ll have a financial buffer of sorts in case the worst-case scenario unfolds.  If business slows or if you suffer a financial setback such as a raw materials price hike or you face costly litigation, you’ll be able to tap into your emergency fund to keep your operations afloat.

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by Catherine Burke // Catherine Burke is a financial writer for online payday loan consolidation. She provides information on successful cash loans and payday loan consolidation to help people get over a difficult patch.

Opinions expressed by contributors are their own.