subject: Business Finance Tips for Small Businesses [print this page] Business Finance Tips for Small Businesses
Investments and money issues can be very daunting, not to mention confusing. However, everybody knows that the key to running a successful business is through sound business finance practices. From the get go, it is important for any business to sharpen up their business finance methods and practices. Clear systems must already be in place so that money can be easily tracked and accounted for. We've gathered some helpful business finance tips that anyone can use. However, these business finance tips may be most useful to the beginner who is still trying to find his way around organizing his finances.
1. Always pay credit cards bills in full- You may get into a business that may promise to yield 6 to 7% of profit, and to finance it, you may think your credit card is the easiest and fastest option. This is a recipe for disaster. With credit cards charging an anywhere from 10% to 21% of interest, then this is the easiest way to say goodbye to your profits. This is why we always discourage businesses from utilizing credit cards. If ever an unavoidable emergency comes up, and you actually need to pay with your card, then make sure to pay the amount fully when the bill comes. Do not even leave a dollar unpaid!
2. Make a budget- Let's face it,it is impossible for any business to operate on a shoe string. Every little thing has a cost and needs to be accounted for, including your salary! To keep everything running smoothly, be on top of how much everything costs. Also make it a point to know how much you are spending personally each month. This is the reason why you need to include yourself, as the business owner, in the budget!
3. Always have emergency funds available- we know that this last tip is not very easy for start-ups and small businesses to achieve, but nonetheless, it is so important! You never know what could go wrong, and when things do, they usually go wrong fast. It helps to have a small stash of savings put away for these unexpected times. This can shoulder instant repairs, requirements, and whatnot, and without you having to take out a loan, or go through some other drastic measures to cover whatever is going on.
Examine every successful business, and you will see that they have some semblance of these tips already in place. Do the same to your business, no matter how small, and you will be sure to have financial success as well!
