When you first begin a business, it seems that money is flying away and before you know it, you are in the red. Here are some tips to help you keep your business on track.
Small businesses attract many new entrepreneurs because of their appeal. In most cases, they have low overhead and can turn a profit rather quickly. For online enterprises, you already have most of what you need to start. There will be expenses for website set-up and other nuances, but you can begin for less than $1,000, or even $500 in most cases.
However, just because you are a small business doesn’t mean that you can fly on a shoestring. Big businesses became that way because they kept track of their budget when they were a small business. That knowledge helps them manage multimillion dollar budgets with greater savvy.
Tips to Stay on Track
* Make a plan – Every business, whether large or small, needs a business plan. It will require some research of other small business models such as yours. How much do they spend on overheads? Are there employees you will need to pay? What about insurance costs? Where do you see yourself in five years? Answer all of these questions so you can see where you stand.
* Consult a financial advisor – They can help you move from conception to reality with your budget. How much money do you have now? How much will it take to run the business each month? They can offer suggestions for creating your rudimentary budget so you have a place to start.
* Open a business account – Many small businesses find it helpful to keep their accounting in one place. Companies such as American Express and your local bank can offer comprehensive business solutions and tools with business credit accounts. You have access to a credit line you may need to tap into, but also a way to track your spending. It can help you amend line items to that budget if you need to. Get business credit cards for employees who travel with a set limit for their use.
* Use computer software – Software helps you stay organized and that is a key to staying on top of budgetary needs. Keep track of your accounts payables and receivables. Send letters to overdue accounts to collect money in a timely manner.
* Get organized – Keep business contracts at hand in case you need to consult them. New equipment such as the wireless portable scanner allows you to scan receipts, and organize them into files on your computer for easy consultation to reconcile at the end of the month. And, don’t forget to back up files in case of hard drive crashes.
Keeping to a budget involves finding a place to start. Once you have worked out the details to get started, you can use software, business accounts and sound financial advice to keep your enterprise on the track to success