Do you put action to your small business goals? If not you are simply wishing for things to happen? Unless you’re a doer, it is impossible to reach your targets.
If you want to maximize the wealth creating ability of your business, here are practical tips you can follow.
Where does your money go? You can start by compiling the receipts and making a list of your expenses, no matter how small they may be. It is so easy to ignore small purchases, when they could add up quickly and empty your cash register. So, track them—and use the result as a basis of your next budget. Probably, you are spending on activities or items that do not provide any benefit for the company.
Save money on small-ticket items
A lot of businesses go paperless to save money, but they are wasting other office items. Make an inventory of your office supplies, and the things at work that you spend money on a daily basis. Perhaps, you don’t need some items that have been adding up to your daily costs. You can also try saving up on utilities, and other things that may seem trivial but when added, they would take up a big slice out of your monthly budget.
Stick to a budget
It could be very hard to do at first especially if you don’t have a stable income. You might be tempted to spend the profits on new supplies or dealings to attract or accommodate more customers. At times like this, it is advisable to make a flexible budget—one that would accommodate certain expenses that are necessary for your business operations.
For example, there is a very high demand for your products, but your raw materials and manpower are limited. So, you need to determine how far you are going to stretch your budget. Otherwise, you may end up losing both your customers because you can’t meet the demands, and your money, because you won‘t get your projected income.
Create cash projection every time you start a new venture. How much would an activity cost? What are my expected results? How much would I lose if it doesn’t work? Can I recover the loss, just in case my plan fails? These are some of the questions you might want to ask yourself before a project begins.
When making a plan, always prepare a financial buffer, so your business won’t suffer due to a wrong management decision. It could be an emergency fund that would shoulder the expenses of your business for at least three months, or an affordable small business loan. GapCap offers flexible, affordable and easy to access financing solutions that could help small business strengthen your finances. Apply now!