As a small business, it is crucial that your finances are firmly under control. It all comes down to one word: budgeting. Easier said than done; trying to do too much too fast can result in the downfall of a business. This can be avoided by taking some simple steps.
Be Realistic in Your Budgeting
Are you pouring an unproportionate amount of funds into your small business, yet not seeing results? You may want to consider downsizing or cutting back on your capital. Many business owners fall into the trap of expanding too fast when a simpler model would yield better long-term results. Remember, slow and steady wins the race. Minimize spending so you can maximize results.
Avoid Expanding Faster Than You Can
Every startup needs a dream team in order to make it big. However, hiring a new employee means an additional paycheck you may be struggling to afford every month. Start with a small team, and gradually bring in new employees when the workload increases. This is called “scaling” and is the tried and true way to grow a business, if not the only way!
Remember the saying: time is money? In traditional workplaces, idle employees are often perceived as lazy. However, studies have found that employees who take regular breaks are, in fact, more productive! Each minute an employee manages to cut from the time taken to adequately complete a task is an increase in productivity.
If you notice that most of your employees are working overtime, it is an indication that the workload is too much to handle. While that is a good thing for your business, overworking brings down productivity over time. The good news: the time has come where hiring someone new is worth more than what it costs.
Buy in Bulk and Negotiate for Discounts
Chances are, if you are purchasing furnishing or IT equipment for your office, you will require multiple of the same item. Do not be afraid to negotiate for lower prices to get the most cost-effective offer. This not only applies to products, but services such as online marketing campaigns as well. You will find that most businesses are prepared to negotiate if you are willing to spend money!
Review Your Budget from Time to Time
Yes, you started your business with a precise budget, but are you reviewing it regularly and making the necessary changes? Businesses evolve over time, and subsequently so do your goals. Put profits and losses next to those goals, whether met or unmet. Does the level of progress justify the amount you are spending each month? If not, it may be time to reevaluate your budget, or even call in professional help.
Having trouble with your business finances, or need a working capital loan to grow your business? Here at CMS Funding, our team of professionals can tailor a funding program to your business’s unique needs, at competitive rates. Get in touch to see if you qualify for a loan today!