We value you and the effort you put into keeping your business running. After all, small businesses like yours are what help keep the economy afloat.
You deserve a break from sifting through tons of blogs to find the answers you’re looking for. What better way to do our part than by rounding up our top 9 small business finance tips to help you understand, plan, budget and stretch your business’s bucks like never before?
Tip 1: Get Acquainted with Your Company’s Cash Flow
We’ve said it before, and we’ll say it again — cash is king. If your company can’t keep a positive cash flow, the situation is sure to get sticky quickly. Make sure you’re able to stay afloat and go toe-to-toe with the competition.
While cash flow is simply how money moves in and out of your business, determining whether your cash flow is positive or negative isn’t so simple. Because your profit doesn’t equal your cash flow, it’s vital to stay in the know when it comes down to where your money is going.
Additional factors that impact cash flow:
- Accounts receivable
- Accounts payable
- Capital expenditures
- Operating expenditures
- Debt services
Tip 2: Create and Follow Your Financial Calendar
The same way you schedule regular check-ins with your dentist, physician or optician, you should be regularly checking in on your finances.
Load your financial calendar up with the important dates you need. Whether it’s paying taxes, pulling your business’s credit report or bill due dates, write it down and follow it.
Other dates to mark:
- Monthly/quarterly cash flow review
- Credit card review
- Financial advisor meetings
- Industry-based low/high seasons
- New year budget planning
Tip 3: Plan for Seasonal Waves and Holidays
You know your industry like the back of your hand. You know what months are great for scaling up or scaling down, so use that knowledge.
Take a look at past sales data and allow it to be your guide. Stock up on fan favorites when you sense a high season approaching.
Avoid being stuck with expired products and watching your dollars go to waste. Plan to start pushing out seasonal products before it’s too late.
Tip 4: Get Intentional About Collecting Invoice Payments
There’s no reason for you to have to chase down payments. Make the money come to you by putting the proper processes in place.
When it comes to getting paid, it’s great to have a reliable end-to-end client experience platform to work for you.
From estimates to payments, Thryv has your back. Draft estimates that get approved on the spot and turn them into approved quotes all from your mobile device. If your service is mobile then your business shouldn’t be limited to your desk.
Of course, we know you don’t want to feel like you’re being rude, but you deserve timely payment for your services. Remember to use proper invoice etiquette to cover your bases and stay in your customers’ good graces.
39% of small businesses spend 5 hours or more per week managing payment issues.
Tip 5: Market Your Business Like a Pro, for Free
Take a break from shelling out money to get your name out on the street. Remember that phrase “sometimes the best things in life are free?” Well, it applies to marketing, too.
Marketing strategies cost a whopping $0.00:
- An accurate Google My Business listing
- Use of local SEO within a blog
- Running for and winning business awards
- Having a social media presence
Interested in snagging other creative marketing ideas? Check out these 14 surprisingly cheap marketing strategies that cost less than lunch.
Tip 6: Kill Unnecessary Startup Costs
Startup costs can be as unpredictable and as a business owner, and counting quarters is the way to go. Challenge yourself to take a more minimalist approach to save big on launching your startup.
Consider giving your location a second thought. Do you need a storefront or an office or could you upgrade your apartment for a fraction of the price and use the extra room as storage or an office?
Do you really need the 6 software platforms you’re planning to subscribe to, or can you find one end-to-end customer experience platform that does it all?
Tip 7: Try ThryvPay to Knock Down Credit Card Processing Fees
Thryv didn’t create payment processing, but we made it better with ThryvPay, because it was designed with business owners like you in mind. With ThryvPay, you’ve got choices.
If cash and check are how you accept payment, then ACH is a great option for you. It cuts the time spent waiting on checks to arrive and clear — or bounce.
Benefits of Using ACH:
- Low cost due to avoiding expensive credit card networks.
- Available to all as long as they have a US bank account, including both businesses and consumers.
- Higher retention and lower involuntary churn because it’s linked to customer bank accounts rather than cards, which expire.
Need more convincing? With ThryvPay, a $5,000 transaction made with ACH would cost your business no more than $9 in added fees. That same purchase, if made on a credit card, could see a whopping $145 in fees with some payment processing services. It’s crazy, we know. And yes, you can take it on the go with the new ThryvPay App.
18% of small businesses surveyed said that slow payments cost them $5,000 or more in the last 12 months.
Tip 8: Charge What Your Worth and Then Add Tax
Determining your price point can feel like a risky business. You don’t want to offend customers and their wallets, but you deserve to see your worth acknowledged in dollars.
Whether you’re setting up and pricing your first event or preparing the raise your prices, it’s important to examine and be honest with why costs are increasing.
- You have more work than you can handle
- Your skills and services are evolving
- Your business expenses or overhead costs are increasing
Providing context as to why you’re upping the cost of your products or services can go a long way with your customers when it comes to building trust.
But, keep in mind not to over-explain your reasons for doing so. Too much information can confuse your clients and may cause them to question your pricing.
Tip 9: Work Your Small Business Connections
You’ve been building a network of connections and maybe you’ve even landed a new business partner. Great!
By using those relationships you’ve worked so hard to build, you can save money and open yourself up to opportunities to earn money.
- Is there a small business I can purchase goods from at a bulk discounted price?
- Do I have a small business connection that can teach me a skill?
- Can I make myself available for other small businesses to refer my company?
While these tips are useful, we all know implementation is key. Get your stakeholders together for a chat and jumpstart getting your business where it deserves to be.