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Business/Investment

3 Ways to Better Finance Your Small Business

As a small business owner, odds are one of the things that can keep you awake at night is your financial situation.

With that thought in mind, are you happy with how your company is doing financially?

If the answer is no, do you have any thoughts on how to go about improving your finances?

Take Steps to Better Ensure Success

In looking at where your finances are now and how you can go about improving them, here are some things to keep in mind:

1. Not being afraid to seek financial help – Some business owners can be a little stubborn. That is when it comes to asking for financial help. While it may be a pride issue, the bottom line is to know when you need a financial shot in the arm and how to go about getting it. One possibility would be to look into revolving credit. If you qualify for such credit, you can access it when you need it without having to apply again and again. Even though you will have a pre-approved limit, the ability to access those funds and put them to good use is key. Whether you go with revolving credit, a small business loan or even folks to invest in you, get the help you need.

2. Removing credit card debt – Millions of Americans deal with credit card debt. That said you do not want to be one of those people whose business is suffering because of it. Take the time to review and see if such debt is weighing down your business. In the event it is, the goal should be to remove such debt sooner than later. Start by paying more than the minimum each month that is due. You should also look to use cash more often when buying things you need for your business. Although some items you get will need a credit card, be smart and avoid continually running the debt up. You might also check around with banks to consider a balance transfer. Transferring the debt over to another bank with better rates could be a wise move on your end.

3. Deals with vendors – If you work with vendors to provide you with items, are you getting the best of deals? If the answer is no, now would be a good time to work on that. Even if you have specific vendors you’ve worked with for years, do not be afraid to make some changes. That is if it will improve your financial picture as time goes by. Unless there is going to be a drop off in quality of the items they provide be open to switching. That would be when it will save you sizable amounts of money. Let them know you need to save money and that is why you want to end the relationship. You may find them willing to negotiate with you and you could come out ahead when all is said and done.

In doing all you can to better your small business finances, what will be your first move?

Business/Investment

Must Read: 7 ways to break away from the paycheck to paycheck cycle

Many of us have become accustomed to living from pay check to pay check; however, there are millions of people who have broken free from the rut and you can too. Living pay check to pay check means you’re one pay check from living without electricity, gas, a home and a car. It’s a worst-case scenario that could happen if you don’t improve your financial situation. Here are 10 ways to break free and increase your income stream.

Recognising you have a problem and dealing with it: The first step to getting out of the rut is recognising you’re stuck in a cycle of your own creation. Go online and read through the experiences of individuals who were in a similar situation but turned their life around. It offers insight on what you’re doing wrong and a few ways to change.

Live below your means: Review your credit card statements, bank statements and receipts. What are you spending every month? Can you cut back on miscellaneous expenses such as eating out and partying with friends? Compare your expenses with your income; if your outgoings are more than your income then it’s time to cut back.

Don’t shop for the sake of it: When you go out with friends, it’s tempting to buy a dress or an item you didn’t plan for during an impromptu shopping trip. Shopping for fun is a costly action. The best option is to stay away if you know your friends always end up in a store when you hang out.

Stop using credit cards and get out of debt: You won’t get your finances in order until you’re out of debt. Debt eats into your monthly pay check, leaving you with little for anything else. You also need to stop using your credit card while you’re paying off your debt. Avoid taking out any loans while you’re at it.

Spend Wisely: When making purchases, try to find the best deals, keep track of all your spending with virtual financial assistants as well as using cashback sites.

Make savings automatic: Planning to save after your expenses mean you will never save. Whether you’re saving for retirement or emergency funds, the money should come first before your spending. Savings should be automatically deducted from your checking account or ask your bank to deduct the funds to your 401 (k) plan automatically.

Increase your income: Another way to cut back on expenses is to increase your income. Get a part-time job or a freelance work online. Sell off household items you don’t need. All the extra income should go towards paying off your debt and you could quit your second job when you’ve finished paying off your debt.

Conclusion

Don’t rely on regular bonuses to cover your living expenses. Instead use it to speed up your debt payment or increase your emergency fund. The emergency fund is how to get out of the cycle of living from pay check to pay check in the long-term. Set a budget that caters to your expenses, insurance premiums, loan and car payments.