As you sit back for a moment and assess where your small business is, are you happy with what you see?
For countless small business owners, there is much to be happy about. Hard work and smart financial decisions have left them with healthy businesses.
On the flip side of the coin, you have some small business owners who are far from running healthy brands.
For whatever the reason may be, they are struggling to make ends meet. As a result, times are tough to say the least.
That said how can you position your small business to be as healthy as possible when it comes to finances?
Lower Your Debts and Boost Your Income
So that you are in the best possible financial position you can be now, keep in mind these pointers:
- Income
You want to be making as much income as possible as you run your company.
With that in mind, how do you get by when times are tough?
You have to figure on there being some down times throughout your business run. As a result, having the all-important rainy day fund to get you by is crucial.
Your income is also of course affected by how much outreach you do. This is especially the case in trying to get new customers to come aboard. If you are doing very little in marketing and advertising, how can you expect consumers to know about you? Even if you have to trim your promotional budget from time to time, do not drop it altogether.
Also make it a point to encourage your current customer base to help you recruit new customers.
By providing the former with loyalty rewards, they are more likely to spread the word.
- Debts
Although you would love to be clear of all debts, you more than likely can’t say that is the case. As such, it is important that you manage your debts.
One of the ways to go about this is by making sure all your business and personal taxes are up to date. There’s nothing worse than owing a lot of money to the Internal Revenue Service (IRS).
One means in discovering such unpleasant news is to do a free federal tax lien search online.
Such a search allows you to discover if you do in fact owe the government money. If that is the case, paying it off as soon as possible is your best move. Otherwise, you could end up in a worst-case scenario of losing everything.
Once that online search does in fact show you owe money, do your best to set up a payment plan. By doing so, you show the IRS that you are not walking away from your financial responsibilities.
- Growth
Knowing when the right time may be to grow your small business can of course prove a challenge.
With that in mind, always have a focus on what your industry trends are. This includes if there is current growth, decline, and some mergers and acquisitions. By being adept to what is going on, you are better suited to make decisions about your own company.
If you do decide now in fact is the time to grow your brand, be sure to have the financial assets necessary.
In the event you are tight on money, you may consider asking a family member or friend to invest in your business. If so, be sure to do it in a professional manner as you would with a stranger. By keeping everything professional, there’s less chance of a breakdown in the relationship.
For you to do as much as possible to keep your business from being on shaky financial ground, be smart.
The better you are in making financial decisions, the better odds your business has in sticking around.
Photo credit: Pixabay
About the Author: Dave Thomas covers business topics on the web.