Business Forum: Think BIG—Financial Tips for Small Businesses
Small business = BIG goals. Whether the entrepreneur of a home-based startup or managing a family run company, you have the passion and the drive to make your goals a reality.
This is your year! Expand your business, invest in new technology, look for investors, hire more employees. With a steadily improving economy, this is an exciting time for small business owners.
As you look to the year ahead, consider these tips when making big decisions:
- Give Yourself Credit
Strong credit goes a long way in attracting new investors, securing loans and assuring vendors and clients that your business is stable. According to the Small Business Administration (SBA), good credit can guarantee small businesses get the financing they need when they need it and the supplies they require at the best prices and terms.
- File it Away
Throw away that shoebox! Remember the importance of keeping accurate financial records. Invest in an online bookkeeping system and filing cabinets. Organize all receipts, invoices, expense reports and other paperwork in a safe place where they are readily available whenever needed.
- A Separate Peace
For your own peace of mind – and that of your accountant’s – always keep your personal and business bank accounts separate. Use a dedicated for-business-only credit card for company expenses. Avoid the temptation to use personal funds to pay business expenses and at the end of the month, you’ll have a truer picture of your cash flow.
- Pay it Forward
Surround yourself with smart people. Attract the strongest candidates by offering them a competitive salary. Not sure what that is? Create a solid job description, then do a little research: Ask other small business owners in a similar field what they pay employees, read trade magazines and search websites. An excellent resource is SBA’s Income Statistics, providing average incomes and earnings for a variety of industries.
- Turn to Your NAPW Network
Seek the advice of qualified accountants, financial planners and other experts, remember your NAPW network. Ask other professional women how they manage their small business finances — NAPW members are a wealth of information!
Small business owners dream BIG when it comes to financial success. Arm yourself with the right resources, advice and network because… 2014 is your powerhouse year!
Share your financial tips and advice with other small business owners. Tell us your thoughts in the comments section below.