Managing Your Money As A New Business Owner
Money is one of the most important concerns for any new business owner. It’s not just important to think about how you are going to fund your new venture. You also need to look further into the future and consider how you can provide the best service at the best price. To make your business successful, you need to make sure that your company is profitable, and paying attention to the figures should always be a priority. If you’re a new business owner, here are some simple steps to help you figure out your finances.
Making solid plans
If you’re a fan of Dragon’s Den or The Apprentice, you’ll know the impact of being unsure when it comes to facts and figures. Nobody wants to be that enthusiastic budding entrepreneur who stumbles over answers when they’re quizzed about retail price or discounts for bulk orders. If you’re going into business, make sure you have solid plans, and you have sheets of numbers, which are accurate, in front of you. Don’t try and blag your way through meetings with lenders or investors. Remember that these people deal with individuals in the same boat as you on a regular basis. If you need funding, it’s your job to convince them that you are a safe bet, you know your stuff, and you have a great business plan.
Protecting your assets
As a new business owner, it’s always a good idea to be neurotic when it comes to protecting yourself and your assets. When you first start out, the last thing you want to do is hit a hurdle that could endanger the future of the business before you’re even up and running properly. If you’re a contractor, for example, it’s wise to take out PI insurance. This will protect you if you make a mistake or a misjudgement, which carries a cost for a client or results in a delay. If you don’t have cover, even a minor error could be enough to sink the ship. It’s also a good idea to invest in insurance for business premises and equipment and to take steps to prevent cybercrime and minimize the risk of downtime, especially if your business is heavily reliant on online sales. It’s always better to prevent financial disaster, rather than trying to recover in the wake of an unexpected bill.
Being efficient
You may not have qualifications in accounting, but that doesn’t mean you can’t be efficient when it comes to keeping track of payments, sending out invoices and banking. If you don’t have an accounts team or you don’t want to outsource this area of the business, it’s up to you to ensure that bills are paid on time, there are no outstanding payments due from clients, and your books are up to date. If you leave papers lying around, you don’t log payments, or you let clients off paying on time more than once, this may result in financial problems.
If you’re a new business owner, your number one priority is probably to make money. To do this, you need to make sure you’ve got a firm grip on your finances from day one. Hopefully, this guide will prove useful. Good luck!
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