Unless you are an accountant or you enjoy working with numbers, it’s unlikely that you look forward to keeping track of your company finances. However, establishing good habits and routines can save you time and help keep your finances on course. Here are the six good habits every small business owner should adopt:
1. Get Organized
Disorganization costs money. Overdraft fees, late fees, and credit interest, can drain your bank account and tarnish your financial reputation with potential lenders and investors.
Putting systems in place will make sure your are paid for the goods or services your provide, that you pay all the bills in a timely manner and that you know what is going in and out of your company bank account.
Look for those small leaks in money like clients invoices you forgot to chase, subscriptions or memberships you no longer use and warranties you have not filed.
2. Ask for Help
Taxes can be stressful, so unless you are an accountant, it may be best to hire one and make sure they are filed properly. It isn’t necessarily that filing your taxes is complicated, but more that your time is better spent running your business. It will also help ensure that nothing is missed and that you claim all of the deductions you are able to, helping you save money along the way.
3. Don’t Undervalue your Products or Services
Don’t underestimate your customer. If your products or services are meeting a demand in the market, let your prices reflect it. Conduct some market research and find out what your customers are willing to pay and don’t just assume a pricepoint. You might be reducing your profit margin for no reason.
4. Ignoring Investments that Boost Productivity
It may be a new piece of equipment, a new hire, or a new system that will take some time and money to implement. If you know you can increase the overall productivity of your business, you shouldn’t ignore the opportunity to do so.
There are smart investments that can help your business be a lean, mean, profit-producing machine.
5. Don’t Assume you are Getting the Best Value
Treat any business purchase the way you would treat a personal purchase: shop around and compare products or services. Don’t just assume that you have been given the best deal you can get.
Just because it was the best deal when you signed-up for that internet service provider, doesn’t mean it still is. Review your operating costs and contracts every six months or so to be sure you are getting the best value. .
Just as you know you are likely to offer a deal to that customer you really want to keep, so will your suppliers. If you discover you are paying too much for a service or product: negotiate! In order to keep your business, they’ll most likely match the competition’s offer. You’ll be save both the hassle of switching and the extra money you were paying.