Only small businesses know the real challenges of running daily operations. The need to juggle multiple tasks, while managing and tracking finances is no small deal. Add to that the challenge of accounting or applying for a loan, and things can get tough. It is however possible to learn, understand, strategize and organize small business to create a well managed entity.
An often ignored trick is to keep money aside for future use and growth. Current demands can often overwhelm a venture already short on money. But any financial plan with money for the future will stand in good stead, for it will offer better products or services to customers.
While late payments could be unavoidable in cases of financial crunch, it is a good habit to develop and keep. It keeps the credit scores healthy, builds reputation, and avoids problems in the future when invoices pile up, making payments difficult without seeking a loan. It goes without saying, but personal and business accounts do not mix. A clear line must be drawn on all issues such as tax, personal liability, credit cards and loans.
Negotiations are here for a purpose. When done diligently, they can total up a good amount of savings for small ventures. Also important are purchase terms, penalties and fines, as well as grace periods. Even late fees can cost substantially when seen in a longer perspective. There are many discount offers and deals floating around in email boxes, and these can be worth a look. Secondhand furniture and equipment too can save precious amounts of money.
It may sound tedious, but a regular look into accounting books and financial statements is a very healthy habit, as it can save many blues later. This will ensure one knows the liquidity status, and will reveal wasteful expenditure. An important skill that can help in raising finance is invoice factoring as explained in this invoice factoring guide.