Running a business is hugely rewarding – creating employment and innovation opportunities, contributing to the local community and economy and seizing the opportunity to follow your passion.
But if we are completely honest, it can also be very stressful.
Knowing the right time to grow or scale your business can be a balancing act but effectively managing your business finances will help to keep your stress in check and, facilitate a more stable and successful future.
Here we’ve put together some tips for managing both the growth of your business and its finances.
INVEST
It’s an old saying but it’s so often true, ‘you have to spend money to make money’. When and where appropriate you may need to look at taking a loan for your business – this could facilitate the purchase of important equipment or resources or may even mean you can invest in training or tools for your staff.
Having considered the return on your investment (ROI), considered spending may just see the innovation and increase in clients that your business needs to flourish, meaning you’ll pay down the debt and even increase profit.
And you, of course, need to pay yourself. You are an asset to your business.
We also recommend looking at all avenues for funding opportunities, including research grants and subsidies. You can read our blog about the ways “Not knowing you are an Innovator could cost your business significantly” here.
RELATIONSHIPS
Maintaining trust and respect with your customers, suppliers, creditors and various stakeholders will go a long way in seeing your business thrive. It will make transactions and acquisitions smoother and generate positive publicity or word of mouth which is invaluable for a business, of any size
PROCESSES & PLANNING
Establishing good habits, from the outset will see that you are better equipped for challenges in running your business, and conversely will see you remain steady and in control during periods of growth.
Even if you are short on time, you should monitor your finances regularly and plan for the unexpected – change is inevitable, in life and in business.
Our blog, on the reasons business systems and processes are the foundations for success covers the importance of business processes and documented protocols.
We strongly believe in the benefits of tracking and recording your financial information throughout the year and maintaining an open and honest relationship with a trusted business accountant and advisor.
If you’re looking for a One Stop Financial Service in Newcastle, Hub Advisory Group is here to help.