Figuring Out Financing: 5 Tips for Every Business Owner
While some business owners thrive with financing decisions, many of us struggle just a bit. It can be incredibly challenging to balance limited financial resources with the perceived needs of the company. Instead of avoiding the topic, tackle it with these five useful tips.
Tip #1 - Don’t Procrastinate
If your accounting work intimidates you, the worst thing you can do is to put it off. As with everything in life, procrastination will only make the problem grow. Even though it may be tempting to look at the size of your new business and think you can wait to establish systems, it is easier to learn how to use the programs at this state. Unravelling a mess while learning a program will only add to your challenges.
Tip #2 – Prepare for Fluctuations
Every business goes through busy and slower periods. In fact, most businesses can track a rather predictable pattern. Be prepared for these fluctuations by working to develop a financial padding. Putting money into this account is just as important as paying your bills and employees.
Tip #3 – Keep the Focus
Identify the activities that are essential for your business. Understand the anecdotal and actual value of these jobs, and prioritize your team’s high value tasks. This way, when new ideas pop up, you can be sure you aren’t pulling team members away from essential tasks to work on something new. If that new project is still important, it’s time to consider the outside resources you can leverage to get it done.
Tip #4 – Properly Value Your Time
For many business owners, working insane hours seems to be a part of everyday life. This is problematic in two ways. First, it’s not sustainable. If you are sacrificing your health and wellbeing in order to stay in the black, you are setting yourself up for failure when you need to start scaling back. Even worse, what would happen to the company if something happened to you? Second, your time is likely the most valuable in the company. This doesn’t mean that others aren’t valuable; this is a numbers comment. At your level, your hourly rate is more expensive than your employees, and it’s not financially sound to be working on tasks that could be completed at a lower pay rate.
Tip #5 – Procure Credit Before Needing It
All businesses rely on credit to some degree, but many business owners make the mistake of waiting to procure that credit until it’s needed. You will always have a better chance of a positive response when you apply for credit during a profitable period than if you wait for a time when you need help keeping the lights on.
As a business owner, you are responsible for filling many different roles. However, no one can be an expert at everything. The most successful business owners rely on a network of trusted advisors to help ensure their business has the highest potential for success possible.
Want to dive in deeper? Check out my post: 8 Financial Mistakes Standing in the Way of Your Success.
About the Author
Craig Korotko is a creative, results oriented C-Suite executive with extensive experience and achievement in creating technology solutions that deliver products and services to the financial industry. As a business coach, Craig Korotko combines his passion for leading small companies and growing them in competitive markets with his ability to lead large cross-functional teams.
In his over 30 years of corporate experience, Craig has worked with startups to Fortune 500 companies with a demonstrated track record of success. He wants to make sure you are not too busy working in your company instead of working on your company. Start the conversation with a simple, complimentary 30-minute advisory discussion. Contact Craig today