Running a small business isn’t easy. There’s so much to think about from marketing to sales to operations and finance. And, when you’re running the ship solo, it can be hard to keep track of it all, especially when it comes to money. With that in mind, let’s look at some ways you can set your small business up for financial success.
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Track your finances
One of the most important parts of staying on top of your business finances is to know exactly where your money is coming from and where it’s going. Start by setting up a spreadsheet or using bookkeeping software. This will allow you to track your income and expenses as each month goes by. While this might seem like an easy step, it’s the easiest way of keeping an eye on your finances.
Set aside money for taxes
All kinds of businesses are required to pay taxes – even a small one that may have only recently started up! The issue you may face here is a tax bill at the end of the working year that you simply cannot cover. Most accounting and bookkeeping software will be able to project how much you’ll need to pay at the end of the year. Once you have a figure, begin putting away money each month so you’re not left penniless once it’s time to pay up. If you’re worried about getting this wrong, it’s worth hiring an accountant to do this for you.
Have more payment options
If your business started from quite literally nothing, there’s a good chance that you’ve been taking cash payments. Consider getting a contactless card reader to open up more payment options for your customers, especially since many people prefer to use their cards these days. It’s inexpensive to set up, and could open up way more custom for your business.
Create an investment budget
Once you start seeing your profits grow, you can then begin thinking about a budget for further investment into your business. Now, it’s important to remember not to get too excited and blow all of those profits at once. Take some time to budget out where that money is going to be more useful in your business. That might mean hiring someone, or upgrading a piece of equipment to increase your efficiency.
Stay disciplined with your spending
Every single penny counts when you’re running a small business, so it’s important not to squander it. That might mean holding back on paying for the business lunches or cutting back on your travel expenses to save some extra money. Again, having an accountant to talk to about any kind of spending is a good idea at this point to help you save money and ultimately, keep your business afloat.
Invest in yourself
Finally, consider investing a little of that money into yourself. Take courses, learn new skills and attend networking events that could lead to your business being more successful. Any investment into yourself will work out for the best in the long run for you, and your business.