Many small business owners know the stress that can be endured when it comes to managing their company’s finances, as there are endless things to keep track of. Unfortunately, there is no one universal way to managing financial stress as a business owner, but below are some helpful tips that can help alleviate some of that stress.
First it is important to understand the financial health of your company. It is crucial to understand how much you are generating on a monthly basis and also how long it will take for that amount to be used up if revenue is reduced or if unexpected expenses come up. If your company runs into financial issues (such as a shortage of assets), it might be helpful to reevaluate the company’s cash flow projections to determine where changes could be made to increase profits or cut costs over time (i.e. limiting inventory purchases).
Next would involve tracking cash flow to help you see trends in where the money is going. This can help you determine what changes need to be made in the future, if needed. A simple way to monitor cash flow is by creating a spreadsheet that outlines current accounts, expenses, income and cash going out. This spreadsheet can be used as a reference point moving forward so you can always know where you stand financially at any point throughout the year.
It is also important to identify the best plan of action for your company to take to ensure the company is not completely devastated financially in the event of an emergency or if a large expense is incurred. One common way to do this is to create some wiggle room in the company’s budget for emergency or unplanned expenses; that way if such expenses do occur, there is money available to cover those costs.
If you find your company in need of working capital a quick way to create some wiggle room it by seeking working capital through Penhurst Capital’s network of sources that can provide funds as quick as 24 hours from the time of submission. Doing so could greatly help to reduce the stress of managing your business.
