Knowing your financial position, 360 degrees is the best way to keep your financial stability intact. Being aware of your financial condition helps you to deal with any financial emergency. Having enough cash enables you to avoid any business debt.
- Accounting management
To manage your accounts properly, you can purchase any good accounting software or hire an expert to look after your accounts. It is essential to maintain the accuracy of your income and costs.
- Cost reviewing
To maintain financial stability, keep track of all your business expenses. Expenses add up very quickly. Timely reviewing of your finances helps you to know your money outlets and leakages.
- Financial projections
It is vital to make your financial projections. Projecting your finances accurately helps you predict address possible future hurdles.
- Using the app for expenses
In this era of digitalisation, technology has made our life easier in every sense. These days, many mobile applications help you keep track of your finances without too much effort.
- Don’t get slack on invoicing.
- Once you provide all the goods and services, provide your invoices on time.
- To ensure timely payments, set payment terms of one week or 10 days not to get forgotten in the process.
- Do not mix business and personal finance
Do not mix your business and personal money. Keeping both the finances separately will help you scale your profitability and facilitate expense tracking.
- Serve yourself first
It is essential to serve yourself first. It doesn’t mean to finish up all your savings at once. You can start with a minimum of 15% of your total finances. It is the right way of keeping some money aside. Managing your finances will help you provide a safety net for any contingency.
- Remain frugal
It is better to stay economical and minimally plan your finances. Set yourself a minimal amount as salary for yourself and offer government-mandated benefits only. What you save now will help you deal with future emergencies efficiently.
- Minimum travelling costs
Travelling costs for business purposes sums up to a significant amount of your expenses. In case you travel for business, do not spend lavishly. Spend on a place to lay just your head at night. Do not spend luxuriously on accommodation. Plan your business trips as if they are self-funded by you.
- Plan some work-free time for yourself.
It is good to work efficiently and religiously but taking some time off is very important. Self-time will help you to analyse your financial situations and manage things properly.
- Cater to bigger business issues
The legal fee is another outlet that you need to manage appropriately. Legal fee, be it any country, is supremely high. To keep your finances in control, you need to find out how to manage your legal fees.
Your lawyers should be clear in terms of their expectations while providing their services. Choose a cost-effective billing option for your business that is suitable for you and the other party as well.
- Save on utilities
You can take leverage on services such as internet providers. To save yourself from the loyalty penalty, it is crucial to review your contracts periodically. There are chances of you being overcharged if you stick to the same provider.
Plan your business expansion wisely. Do not plan to invest huge chunks of money into your expansion as they are too quick as it can lead to unfavourable conclusions.
- Marketing and PR strategies
Follow a structured marketing and PR strategy to stay focused on implementing your business ideas.
- Consider renting instead of buying
Renting is always a better option than buying, be it land for your business or equipment required for its functioning. Renting or leasing equipment helps you reduce maintenance costs and avoid overpaying for no reason.
Renting out your office space also gives you mobility to relocate.
- Loan Borrowing
Do not wait until your business is in a financial quagmire. Do not apply for a loan or a credit at the end moment. There are significantly fewer chances of getting loans at the end moment.
Try to apply for a loan when your financials are still in s good state. Borrowing loan at the right time will help you use the loan amount for expansion or any emergency.
- Make sure you have enough capital
To keep your business financially safe and stable, maintain enough capital for at least three months of your expenses.
Save money for your business as if you will be receiving no more revenue for the next few months.
- Check your business credit score
Always keep a good credit score and try to improve with whatever means. A good credit score helps you get a fair amount of loan whenever in need and helps build a credible image of your business.
Many lenders require a good credit score. Financial institutions and banks provide many loans like provident with no credit check, car loans or personal loans. A good credit score can help you borrow any kind of credit that you want.
- Don’t spend prematurely
Before any inflow of revenue, do not spend unnecessarily on lavish things like business cards or marketing strategies. This can lead to financial leakage even before the revenue inflow.