Sage Financial Hacks for Small Business Owners
Understandably, the idea of starting your own business can be highly enticing.
After all, running your own business can come with incomparable benefits.
However, it can also come with its own set of challenges.
While many people succeed, there are also those who fail.
If you don’t want to be part of the latter, it would be a good idea to heed the following financial advice before you give up your job and steady income and become your own boss:
Ensure you have access to the capital you need.
If you are just starting out, you can expect that at one point or another, you would need to get additional funding to fuel expansion or to ensure the venture’s survival.
Small businesses often consider getting additional funding for the following reasons:
- To expand the business
- To launch new products/services
- To hire new employees
- To refinance old debts
If you plan to apply for a business loan, your knowledge should not be limited to the options available at your disposal, SME loan interest rate, or the terms of the loans alone.
It is important that you should also know about the pros and cons, the payment schemes, and all the essentials about each option before you can make an educated decision.
When possible, consider getting the help of a trusted loan broker so key elements like SME loan interest rate, payment terms, etc. will be explained to you in detail.
Consider engaging as opposed to employing.
Instead of hiring people to carry out part-time jobs (legal strategist, legal counsel, etc.), opt to retain a consultant considered an expert in their field.
Many consultants come from big companies and left to pursue their own businesses so they are equipped to provide the guidance and insight you need.
And since consultants, cross pollinate (read: they work with numerous other businesses), they are able to bring best practices, perspectives, and advice from the other clients they work with.
The insights consultants can provide will help you steer clear of those mistakes that will cost your company dearly.
They can also help you significantly improve areas of your business you are struggling with.
As a general rule of thumb, consider outsourcing part-time functions outside of the core business.
Have a lean start.
Regardless if you are launching a product or still in the process of getting your venture off the ground, you don’t always need to go about things in a grandiose manner.
In other words, you can do away with getting a very lavish office or spending years developing your products or services prior to launching.
Instead, consider the idea of putting your business vision to the test by launching a more rudimentary version of your concept to gain feedback and interest.
Gargantuan companies like Proctor and Gamble and Starbucks often test their new concepts on smaller markets prior to launching them worldwide.
Even if you are a small company, it does not mean you can’t employ the same tactic in your business approach.
Develop a prototype of the product you would like to test, launch it in small markets, test, get feedback, and refine it prior to launching it formally.
Rank sales and marketing high on your priority list.
In essence, your small business will not get anywhere until sales are made.
That being said, consider finding ways to generate effective leads a top priority.
Once you are able to effectively generate the leads you need, your next challenge would be to ensure those leads are converted to sales.
Also, you need to find efficient means of making repeated sales.
While the task might seem too complex especially for small companies just starting out, it is reassuring to note it is not as complicated as it seems.
Start by creating and employing a marketing and sales funnel system you can measure, test, and refine and take it from there.