Bad finances kill businesses everyday, you must know that already. In fact, the financial aspect of your brand is one area that can diminish the impact of your creativity or even determine if the quality of your work will eventually become known on a global level. This is because money drives everything in our world; the exposures needed for your brand, the skilled help you will need to hire along the way and many other strategic steps your business will need to take all depend on the state of your finances.
It is wise to conclude that the ‘money-state’ of your business is the foundation on which every other progressive part of the business will be built.
We carefully selected these essential tips that we are sure will help you stay in full control of your business’ finances, avoiding unnecessary emergencies and guaranteeing continuous growth for the business.
1. Set Up Specific Financial Goals
Never go blank when it comes to your finances, be clear about where you want to be in 3 months, 1 month or even 1 week, this ensures that your actions are guided towards a desirable result.
2. Create a Spending Plan and Track It
Do not release money on impulse, create a stiff spending plan and refuse to flex it. Payment days for instance are meant to be fixed; invoices should not be treated on impulse.
3. Use Extra Income Wisely
Extra incomes are not for extra spending, they are leverage points granted to you, that must not be lost or misused. Such monies are meant to take advantage of future opportunities that may show up without prior notice. It is unwise to waste it.
4. Don’t Play With Debt (Yours and your customers’)
Debt has it’s part in the market but it must not be abused. Excessive debts owed by a business or owed to the business by customers is a fast killer of businesses. Watch it!
5. Save A Lot
After you have saved, check what is left for what more can be saved. The more resources you retain, the more predictable the future of your business.
6. Cut Spending When You Can
Any thing you can avoid spending on should be avoided. From the little things like cable subscriptions to more important things like replacement parts; avoid any debits that you are sure can be avoided.
7. Kill Money-eating Habits
We all have our indulgences and they often turn out to be cost-ineffective, almost all the time. Without mastery in this area, your finance puzzle will always turnout unsolved. Can you not spoil yourself with money you worked to earn? of course you should, but this should be properly managed.
8. When Possible, Give ‘In Kind’ and Not In Cash
There are times when it is actually possible to give non-cash value in support of people or causes you love, take those opportunities and show that you care without violating your financial plan.
Apply these tips and never stop learning about money and financial management.