By Devin Morrissey
Although many say failure is the best teacher, business owners probably want lessons elsewhere. Mistakes help people learn, but failures in small businesses can result in hefty consequences. So why go through the trouble when you can get it right to start with?
There are many financial hacks that’ll place your business in a better position to succeed. Having the right tools, small business loans, and income protection skills can mean the difference between staying in business and going out of it. Not sure where to start? Here are some tips to get you started.
When you’re starting, sales won’t be through the roof. Time is needed to build your reputation. However, it’s slow going if inefficient processes are filling your day. That’s why it’s important to invest in tools that’ll take care of those tasks for you. Although you’ll have to pay a fee, these software will ultimately save you time and money in the long run:
- Accounting: Accounting is one of the most vital tasks in business, but also one of the most despised. The time used for bookkeeping could be spent on something else. However, the importance of accounting cannot be overstated. Accounting mistakes are hard to redeem, resulting in potential losses of clients and employees. So if efficiency and accuracy sounds good to you, it’s time to invest.
- Project Management: This tool will be useful once your company starts growing. The bigger your company, the more projects there’ll be. It will be impossible to efficiently find information if it’s only known by a select few. Project management software addresses this issue by having information in a centralized location that’s accessible by all.
- Email Marketing: Almost everyone has an email account, which is why email lists are integral. However, once you have a list, what exactly do you send? Nobody likes getting spam, let alone a badly designed email. The message must be accessible on all devices as well. By using email marketing software, attractive and responsive emails can be easily created in just a few clicks.
Get a Loan
For the most part, you won’t have the funding you need to start your business. That’s where small business loans come in. However, getting a loan is difficult if you have bad credit. To increase your chances of being approved, it’s best to repair your credit.
However, credit repairment takes time, putting a hold on your small business. If now is the time for your company, though, there are other funding methods to consider. Instead of going through a bank, trying finding an angel investor.
Angel investors are more personal, considering you and your proposal as whole. Loans from friends and family are also viable options. Loved ones are more likely to believe in you and back you up in any way they can. Lastly, a method that has gained in popularity is crowdfunding.
With crowdfunding, people can invest as little or as much as they want. This makes individuals less afraid to invest since they can offer an amount of money they’re comfortable with. Also see if you’re eligible for grants. If accepted, grants will give you money without the expectation of something in return.
Protect Your Income
To make the fullest use of your tools and loans, it’s best to create a plan for rainy days. No matter how protected your company is, there’s always an achilles’ heel to address. By preparing for future issues, your income will be better protected.
To do this, you’ll need to assess potential threats your company will face. Depending on the industry you’re in, some threats will apply more than others. However, problems all companies can face are legal issues and data breaches.
When you determine the pitfalls of your business, it’s on to business insurance. Insurance protects your company if you face some of the problems you predicted. You’ll need to make sure a policy has acceptable coverage in the areas you need.
If you already have business insurance, double check that your coverage is adequate. If not, it’s time for a change. Lastly, before any problems occur, you need to form a business continuity plan. Determine the minimum processes your company needs to stay operational.
Also create a list of contacts when certain situations arise. Checklists are a good idea too in case forecasted threats come into fruition. When you know what to do when disaster strikes, you’re less likely to lose your head and more likely to come back on top.
When you’re a small business owner, a little help can go a long way. Business management tools, loans, and income protection skills are just a few ways to aid you and your company. When you’re prepped with these finance hacks to achieve your goals, nothing will stand in your way.
Devin Morrissey prides himself on being a jack of all trades; his career trajectory is more a zig zag than an obvious trend, just the way he likes it. He pops up across the Pacific Northwest, though never in one place for long. You can follow him more reliably on Twitter.