When you’re a small business owner, managing your finances is vital to your long-term success. If you want your business to last long enough to travel through several generations of your family, then you need to be wise about your financial management.
You may not know where to begin when it comes to managing your business finances, but there’s time to learn. Check out a few helpful hints that will get you on your way to fine financial management in your small business.
Try cutting costs by running a remote operation
Hiring remote employees will cut overhead costs in the office. You can even do without a public office, and run your personal office from home. Hiring remote employees also grants you a wider selection of professionals from which to choose your working mates.
You’ll be able to vet prospective employees more thoroughly as well. Hiring remote is catching on like wildfire, and could save you thousands per month in operating costs.
Make certain you have the proper insurance policies
Insurance is paramount in the protection of your operation and the employees with which you run your business. There are several key policies you’ll need to cover your legal bases when you are the owner of a business employing several individuals.
Here are just a few you should consider:
- Workers’ Compensation insurance is legally required to cover workplace injuries.
- Property insurance will cover the cost of your “things” should you suffer property damage.
- Professional liability insurance protects against rogue or incompetent employees.
- Product liability is important for protecting your business against a defective product.
Always keep your personal and business finances separate
Mixing business finances with personal finances is a dangerous path to travel. Avoid it at all costs. Keep your business finances completely separated from your personal finances, and always pay yourself first. Have separate bank accounts and separate budgets, even if you’re just running a one-man/woman operation from your home.
Find the best money management software available
Use the technology available to make every process in your business better, especially your financial management. You should have documentation to show where every dime went in and out of your business. Quickbooks is a common solution to financial management in small and large businesses, so check out what the software has to offer.
Don’t be scared to negotiate with vendors
You may be able to save a few bucks regularly by negotiating the price of vendor services. Vendors are familiar with the custom, so you’re not approaching a foreign subject by asking for a discount. Drum up a beneficial bargain for the two of you, and see what you can do.