Smart Money: Financial Advice for New Business Owners

Photo credit: Pixabay

Developing a new business can be overwhelming, and you want to make the best choices with every dollar. With smart strategies in place you can manage your finances wisely and stretch your pennies. Here is some advice to help you get started on the right foot.

Daily tasks. Before you get too far behind on chores, establish a daily routine for fund management. Lagging on those humdrum activities can leave you open to forgotten invoices or wayward tax payments. As Chron explains, you can make a list of daily chores to help stay on task. This should include bookkeeping items such as entering your purchases into a spreadsheet, tracking incoming bills, and managing payroll. Set up electronic reminders so you can stay on top of your tax responsibilities.

Develop a logo. One of the easiest ways to develop brand recognition is with a great logo. Thankfully, you don’t need to hire a marketing team or graphic designer for a clever logo. If you don’t already have a great logo in mind, try checking out your competition. See who is up and running with a successful and eye-catching logo and think about why it’s working. You don’t want to copy anyone else, but you can get some ideas of what is out there and what makes some logos shine while others are uninspiring. Then use an online logo maker to design your logo for free. It’s a great way to save some outflow and lay the foundation for brand recognition at the same time.

Contact consultants. Another smart way to stretch your pennies is to invest in consulting services, but opt for free ones. Entrepreneur suggests you connect with organizations such as volunteer-based SCORE for free consulting and training. Another option is to reach out to your local Small Business Development Center (SBDC) for training or consultation. There are over 1,000 SBDCs in America that work to educate and inform small businesses, and the only thing you need to invest is your time.

Shipping options. Will you use a lot of shipping? No matter what your product is, it’s important to be aware of ways to pinch pennies. For instance, many small businesses can benefit from ePacket delivery. EPacket is an agreement between the United States Postal Service and Hong Kong Post, which allows for quicker and less expensive shipping between China and other countries. Tracking shipments is a breeze, which means better customer service on your part.

Barter. Trading goods or services is a terrific way to meet your needs and save money. Reach out to other local business owners through area organizations or contact the International Reciprocal Trade Association (IRTA). IRTA works to match you with other businesses interested in swapping services and products.

Do dishes. Early on, you may not be able to squeeze out the funds to hire the full staff you envision. By taking care of tasks such as emptying trash cans and answering the phone, you can spread your money further. While you may feel excited about filling your payroll budget right off the bat, some experts believe it is smart to participate in the day-to-day, basic operations. Besides, your customers and employees will appreciate the personal contact with you, which is especially important while growing your clientele and company culture. You can hire people to do some of the nitty gritty work later, but do some basic chores yourself for now.

Opt for used. When adding equipment, furniture or other supplies to your new business, purchasing used items can mean saving big bucks. Visit bankruptcy auctions and sales to find items that meet your needs, or reach out when other businesses are downsizing or moving. Also, consider borrowing equipment or other items when possible, or rent what you need. You can invest your money in new items later, once your business is well-established.

Money-wise. When you’re starting a new business, it makes sense to be especially careful with your money. Organize your financial management system and find ways to stretch your pennies. In time, you’ll enjoy success thanks to these smart strategies!  Once you’ve considered all these options, it’s now time to start building your business’s credit.  You should not have personal guarantees with any creditors as there is no protection from filing for bankruptcy for your business.  Contact us today so we can obtain and analyze your business credit report to ensure your success.

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.