8 Lessons Learned: Options

Financial Advice for Business during Tough Times

When you’re an entrepreneur and you’re starting a business during recession or when you’re a small business owner and you’re growing a business during tough times is the ultimate challenge for you. With agility, planning and the right resources, small businesses may even spur growth even during tough times. Business strategies and growth may vary, depending on what kind of business it is, but there are also common denominators that characterize the success of small businesses during rough times, therefore, here are some strategies that may help tide your business through.

Re-evaluate Your Business Budget

Careful management of costs and expenses, through well-planned budgeting and implementation, in your business is an essential factor for your business to continue to grow even during tough times, which will prove to be your valuable asset to succeed in your small business, most especially if the business relies on credit. Being able to come up with an accurate system of profit and loss estimates, as well as forecasting these on short and long term basis, may very well provide you a standard basis for managing your costs and expenses.

Observe Business Expectations

Practice to anticipate or even expect some unforeseen circumstances that may seriously affect your small business, and having an emergency fund is proof of that kind of anticipation, such that when there is need to change some of your business operations to be able to continue with it, that emergency fund will be much needed to finance whatever changes will be instituted in your business. With an emergency fund to fall back on, whatever changes you plan to introduce will help pull your business through hard times.

Always Check on the Cash Flow

Monitoring cash flow regularly and managing it properly are important tasks of any business owner, since this can spell the difference if your business is well managed or not. By following up regularly on your cash flow standing, you can have a better assessment if your business needs capital requirements or your one-time investment is enough.

Prepare and Review Monthly Statements

One of the basic must-do in any business is to prepare and review the following monthly statements, which are: balance sheet, profit and loss statements, and cash flow statements. Any responsible business owner has the duty to regularly keep an accurate account of all the money entering and leaving the business, including the constant updating of your budget and monthly statements.

Enhance the Billing and Collections by Software Applications

To improve your bill and collections processes, try automating your accounts receivables (AR) process, using the appropriate accounting software, and by doing so, you get these great advantages: 1. E-invoicing offers AR departments the freedom to produce both paper and electronic invoice format in order to match every customer preference, 2. Moving from manual to automated invoicing not only increases AR departments efficiency, it can also reduce processing costs by 44%, 3. An e-invoicing solution allows companies to send out invoices as they are prepared in real time, giving customers the chance to immediately initiate their internal payment process and getting you paid faster, and 4. Automatic emails to customers reminding them of their payment owed helps speed up collection times, reduce calls, and improve customer relations.