Maricor Bunal
A company is just like a newborn child. You have to spend time, money and effort nurturing it until it will be strong enough to stand with minimal management. And like a new parent, a newbie entrepreneur may find it exhausting to juggle crucial tasks such as acquiring clients, planning for growth and managing the workforce. So to avoid draining yourself even before you succeed, it might help to pick up these business hacks to ensure your company stays on track – these are all related to financial handling, which takes up more than half of your task:
Study your seasonal sales cycle and cash flow
Seasonal spikes can greatly affect your business, especially if you’re into trading seasonal products and services (e.g., travel services, school supplies, flowers, digital tech tools, accounting software). You should know your peak season and take advantage of these times to earn as much as you can to cushion your company during downtimes.
Secure sufficient funding
Anticipate risks when planning for your start-up cost. When planning to get a corporate loan, for instance, you have to consider funding for downtimes, emergency expenses and overhead expenses.
Be very vigilant with the numbers
Use online accounting tools to generate financial reports faster and easier. This will also ensure your numbers are current and accurate, helping you determine how best to allocate your funds, how much to borrow if the need arises and where to cut cost if necessary.
Establish strong relationships with banks
Banks and other financing providers are your go-to guys during tight financial times. So you better establish strong relationships with them by settling down accounts and doing transactions efficiently. All these can help build your reputation and increase your credit limit, if you’re aiming to borrow more funds in the future.
Leverage your strengths
As much as you should fix and strengthen your weak points, you should also focus more on developing your core strengths. On your balance sheet, for instance, take a look at those assets or projects that have been earning more for your company and cut cost for those that are not very profitable.
Choose the right financing solution
If you’re pooling money for your capital, it’s important to partner with the right provider. Many entrepreneurs fall into the trap of borrowing cash from anyone who’s willing to lend them only to end up paying unreasonably more than they should. So before you even start looking for a provider, determine the type of features you want to have (e.g., revolving credit line, project funding, flexible term). You can also consult Loansolutions PH financial agents for the current interest rate and products on the market today.
The initial phase of starting a business is really the most critical one because it serves as the foundation, especially in terms of accumulating profit-generating projects and assets that will sustain your company. With the tips above, you should be able to get the first stage covered.
