The rising cost of living will undoubtedly have an impact on small business performance. After all, rising bills and expenses mean that “customers are being more careful and spending less on products and services.” Thankfully, there are many ways in which business owners can work to better their financial position during this turbulent time, without having to worry about business closure and debt.
With that in mind, here are some steps you can take to increase your incoming finances as a business owner.
Improve your cash flow. Cash flow refers to the flow of money in (and out) of your business – and “having a positive cash flow means that more money is coming into the business than going out”. One of the easiest ways to boost your cash flow is by ensuring any invoices you send out are paid on time. To achieve this, you should set clear payment expectations with customers ahead of time, date invoices, and send reminders when a client has paid promptly.
Consider opportunities in crypto. While there are many ways you might get into crypto, it’s clear that digital currencies are going to be around for a while. Not only could it present you with a significant investment opportunity – but could also help grow your business finances. This is because accepting crypto as payment makes cross-currency transactions easier. Furthermore, a recent study from Deloitte found that the purchase amount for payees using crypto is often twice the amount of payees paying through card/traditional bank transfer. If you’re looking for a crypto account for your business, be sure to check out BCBGroup.
Cut back on your spending. Cutting back on unnecessary business expenses and overspending can also help you to boost your business finances – namely due to the fact it helps you gain more control over your bank account. Thankfully, there are many ways to strip back your spending without sacrificing the quality of services you have on offer – you simply need to figure out where your investments are worthwhile, and where you may be wasting money. For example, if one of your marketing campaigns is not resulting in conversions, there’s little point in boosting or promoting these posts. Instead, that money could be funnelled into other more successful campaigns. On a similar note, if you’re managing a mostly-remote workforce, it may be worth considering the benefits of going totally remote – thus cutting down on rent and utility bills.
Hire an accountant. When trying to save money, hiring new staff may be the last thing on your mind. However, a skilled accountant can actually save money, as they’ll be able to support you with practicalities such as tax payments, while also identifying any financial mistakes you are currently making. They’ll also take a great deal of pressure off your shoulders, enabling you to spend more time doing what you’re actually good at. In turn, this will make your business more productive and more successful overall – and you’ll never have to agonize over another spreadsheet again.