BusinessFinanceTips

10 Powerful Ways To Manage Business Finances

You have a true passion for fashion, and you’re planning to make it as your profession. You’ve taken the right decision. To run a successful business may be the most difficult approach. There are few businesses who fall on the dark side. One of the big mystery of business failure is, few people start a business after a huge success. Plan to start another business with the same enthusiasm, but end up with huge losses.

The toughest part of falling on the dark shade is that the business owner will be unaware of the thing happening until it’s too late. Keeping a track of everything you do in your business is imperative. If a business owner knew which process went wrong? What are the steps need to be taken to overcome the mistakes? Unaware of the mistakes can save the business.

As a business entrepreneur, your prior task would be organizing your business. Also, making sure that everything is going on the right track. Right from budget to reporting process. Administering everything well-organized is a powerful process to grow your business.

There are a few common causes of financial obstacles in every business such as:

  • Insufficient cash
  • Bootstrapping
  • Legal challenges
  • Over-expansion
  • Excessive AdWords spending
  • Poor accounting practice
  • Unnecessary expenditure

Financing your business is a challenging task. Whether you are looking to establish a business or capital to extend your business. This article is worth reading. Following are hand-picked ten financing tricks and technique to manage your business finances.

Invest in best accounting software

Do you know running out of cash is one of the common reasons for a small business to fail? What can you do? Your problem can be solved with the right accounting tool. This software can organize your business while going a year and beyond.

Salt is the main ingredient in any meal-course. Talking in a business sense, profitability acts like the main ingredient of business successes. You need to have a clear idea about cash flow in your business. Where the money is investing? How much money do you need to spend? Don’t worry, accounting software will do it for you.

  • No more entering data manually, with spreadsheets you can save time and reduce errors
  • Spend less amount on multiple accounting processes
  • Reduces your labour cost and improve your business ROI
  • Get a comprehensive snapshot of entire finances for business decisions

Accept and use multiple payments modes

What payment method do you offer for your customers? Because it’s vital to choose a payment mode when you’re planning to start a business. This can be an imperative factor in ensuring you organize the cash flow effectively.

Today’s market world is highly competitive. In order to be on the top list, you need to offer a high level of security and service to your customer.  

There are various types of payment methods such as

  • Credit and debit card
  • EFTPOS and online payments
  • Cash-on-delivery and cheque
  • Bitcoin and gift cards
  • Digital currencies and money order payments

Choosing the perfect payment mode will reply on business need and requirements.

  • Customer preference – Selecting a payment mode your consumer prefer will allow them to pay you on or before time.
  • Risk – It’s a known fact that cash has a major risk of theft. Since the amount doesn’t debit directly to your account.
  • Privacy – Credit or debit cards will automatically record every transaction. Due to privacy reason, many of customer most likely to prefer to pay through credit cards.

Apply for business bank loans

What would be the first place you visit when you’re running out of cash? Definitely bank right. Banks offer various loans such as business loan, education loan, home loan, etc.

If you get an instant bank loan approval in order to fund your small or large business, you need to make the great use of it. Since, banks offer a very low-interest rate, long-term plans, and others.

Banks offer you multiple loans depending upon your business requirement at low-interest rates. Apply for a business loan online and get approved within a few minutes.

Build financial dashboards

A well-designed financial dashboard can provide you with a visual sketch of your financial KPI’s. If you want to keep a track of your cash? Then, financial dashboard tools would be a great idea for you. These are the amazing tools where you can visualize every financial task and manage your funds in an easy way. The dashboards can easily identify the affected areas that need immediate attention. Easily track, analyze and monitor the business profit, sales, budget and expenses in real-time.

With respect to company goals, select an effective dashboard

  • CFO
  • Opex-to-sales
  • Profit & loss
  • Retail banking
  • Investment portfolio
  • Crowdfunding

For more effective results, you can create your own visuals of cash conversions, capital flow, budget allotment and other financial processes. With ease use of dashboard allows you to track the business progress with ease.

Use mobile payment software

With the immense need for the effective money transfer process. Business owners are planning to swift ways to send & receive payments.

Mobile payments provide an easy and efficient approach to pay for products online. There are various mobile-payments systems are available in the market for every business.

There are few mobile payment tools such as G Pay, Samsung Pay, Cash App, etc for every business. These software’s allows everyone to send and receive payments through a mobile device. Does it sound amazing? The tools are used to organize the most part of your financial process via smartphone. Therefore, you can control the transactions every time and everywhere.

Prefer renting over buying

What do you prefer buying or renting a product? From decades it’s being a passionate debate in a financial sense. Both have their pros and cons. But as a business owner, you need to prefer renting over buying.

Many people think that renting is just a waste of money. It’s a wrong belief. Paying rent for your products is not a waste of money, you’re getting products in return.

If you buy products or machinery, you need to buy all it yourself. Sometimes you may spend maximum money on interest, taxes, GST or other – money you can’t even see again. These type of payments will not benefit you to build equity.

Raise money from friends, relatives or family

Catching up friends, relatives and family members is the common method to finance your business. But keep a note, you’re turning your loved ones to creditors. You might be facing risk in the future. Sometimes, there may be crashes in personal relationships. Therefore, to avoid these type of situations, you need to provide financial projection and evidence-based agreements.

Apply for microloan

Have you ever heard about microloans? Microloans can be the easiest loan to obtain than other traditional loans. In simple terms, microloans can be offered to any business that requires less than 50,000 dollars. The loan ranges from $500 – $35,000.

Microloans are small therefore business owner doesn’t bother lending the fund. Rather than preferring land, you need to switch to the best microlenders. There are multiple microlenders in the market, you need to meet the eligibility criteria to qualify for a microloan. Sometimes, you don’t require the right credit score to get qualified. You need to build your business blueprints that define your goals and objectives.

Use credit cards

If you’re running a small business, then you might probably receive various applications forms for credit card applications. Don’t neglect, this is a convenient approach to generate maximum ROI.

These small business credit-cards can provide you with effective access to a revolving line of credit. There will be a certain credit limit, you can purchase machinery or withdraw cash

Sometimes accessing a credit card can be risky for your business. Using a credit card in the right way can be more beneficial to extend your budget.

Crowdfunding

Crowdfunding is an effective approach to raise capital for your business. It’s a collective effort from customers, friends or individual investors. In general, crowdfunding is a collective effort – a large pool of individuals.

There are various types of crowdfunding such as

  1. Donation-based
  2. Reward-based
  3. Equity-based

With crowdfunding platforms such as Fundable, you can access through hundreds of accredited-investors where you can watch, interact and share the fundraising campaign. Right from the launch to close, there can be a lot of things you can do. You can promote your campaign via social media platforms, newsletter, e-mail marketing or etc. Therefore there are various chances that can double your website traffic.

Related posts
BusinessDigitalTechTips

How to Get Followers on Twitter

BusinessDigitalMarketing

How to use Twitter?

BusinessDigitalTechTips

How to Create Instagram account

BusinessDigitalMarketing

How to Use Instagram Hashtags for Business: A Strategy for Visibility