Most finance professionals believe that a lot of small businesses don’t grow because of lack of finances. There are many businesses that have a good enough cash flow for steady growth, but are still not profitable. And some other small businesses have such bad cash flow that they are on the verge of bankruptcy.
Here are 3 growth strategies to help you increase your business’s finances.
Separate Your Business Accounts From Your Personal Accounts
The business owner is very different from your every day. So is the money your business makes for your business. From the moment you start your business, set aside a separate account for it; this is a way for you to track growth and cash flow in your business.
Explore investment opportunities to double your money
Are you aware of the 50-30-20 money rule? This is a popular rule by US law professor Elizabeth Warren, in her bestselling book “All Your Worth: The Ultimate Lifetime Money Plan,”
In this book, she itemises the following:
- 50% to needs
- 30% to wants
- 20% to savings
50% of your business’s profits should go back into your business’s operations. Such as paying for equipment, electricity bills, data costs, etc., 30% should go to paying yourself and your staff if you have any. Then the 20% should be saved but should not be left idle.
Explore investment options.
Business advice: Preparing a business budget and sticking to it would allow you to easily emulate the above money rule as you aim to upscale and multiply your business earnings.
Find other financial incentives besides loans
A way to grow your business’ finances is to look for financial support that would not stress you.
There are hundreds of business grants and empowerment schemes for small businesses like yours. So no matter how enticing, taking a loan is, explore other options first for the sake of your business’s needs. There are many financial support sources, such as friends and family, etc.
how can Simplebks help you? It is an easy-to-use accounting tool designed for entrepreneurs to help increase your chance of access to finance with our autogenerated financial report.
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