It was Norman Vincent Peale who once said, “shoot for the moon. Even if you miss, you’ll land among the stars.” As an entrepreneur, you know the power of positive thinking. But happy thoughts alone won’t build your business from the ground up. Keep your optimism in check, and your business healthy, by managing your startup costs, collecting on invoices, and giving yourself time to pay your bills. How can I, as a small business owner, entrepreneur, and CEO do all of that by myself and still mange to grow my business? I’m happy you asked. Follow these tips to raise your business baby the right way, and ensure your long-term success!
Don’t Spend Early
“Shoot for the moon” may be good advice when you’re brainstorming a new business idea or setting long-term goals for your company, but be wary of making too many financial expenditures up-front. As a new business owner, your unwavering belief in your business may lead you to over-estimate future sales. If you’ve only been in business for a short period of time, there’s no need to invest in purchasing a fancy office space or investing in high-end equipment. Start out by renting your office space. Not only will renting save you money on a down-payment and maintenance costs, but it gives you the option to relocate at any given time. You can even negotiate with your landlord for a reduced rent or a free rental period. Similarly, you can rent any equipment you may need to produce your product or sell your service. Again, you save on maintenance and upkeep costs, and you can always invest in better equipment as your business grows.
Get that Paper
As a small business owner, you take pride in providing a top-notch service or a world-class product. Once you’re actually selling your product or service, make sure that you are also sending your invoices out immediately. If you’re providing a service to your customers, invoices should be provided upon delivery of the service. As a new business, short payment terms are your best friend. Allow no more than seven days for payment, and make sure to follow up on invoices promptly. You may also want to consider offering a discount on your product or service in exchange for prompt payment. You can even offer a further discount for pre-payment, or offer a subscription service to your clients. Make payments easy for your customers by accepting all payment methods including cash, checks, credit cards, and digital payments such as PayPal and Apple Pay.
Give Yourself Time
Even though you’ve been paid for your brilliant product or outstanding service, don’t rush to pay your vendors. Shop around for the right vendor for your business. Choose a vendor that offers the most favorable payment terms; the longer the repayment period, the better. If your current vendor is giving you 30 days to pay your bill, consider looking for a similar product or service that will allow you 90 days to pay them back. Chances are you won’t need the full 90 days to repay the bill, but having the extra time will free up cash and give you peace of mind. If you know you’re going to be purchasing a set amount of supplies each month, you may even want to sign up for a cash-back credit card to maximize your return on investment.
The Bottom Line
Cash is Queen, and your goal should be to have as much profit as possible flowing to your bottom line at any given time. If you stay frugal, collect prompt payments, and give yourself as much time as possible to pay your bills, you will give your new business the best chance possible at reaching the moon. Keep a close eye on your cash flow, and maintain a strict weekly budget. If you need a little help, consider investing in DIY accounting software to make sure profits are always flowing to your bottom line. And remember, if at any time you need a little boost of capital, BizLender is here to help. Check out BizLender online or call 855-433-8641. BizLender has been offering lending solutions since 2013, and emphasizes working smarter, not harder, by using technology to fund small businesses in as little as 24 hours.
Get our latest updates, learn about what's in the press and stay current with industry news.
To get started, fill out the form below and click