By Michelle Keldgord Jul 27, 2022

There are many aspects to consider when starting a small business, whether you’re brand new to entrepreneurship and fall under the umbrella of millennial small business owners or have tried your hand at a few small businesses throughout your lifetime with little success.

And while things like determining your audience and creating a strong business plan are critical, the financial aspect is just as important – if not more so. Without understanding small business financials, you can find yourself underwater moneywise.

The good news is that financial planning for business owners doesn’t have to be complicated. With the right tips and tricks under your belt, you can create a small business financial checklist that leads to thriving and overall success.

Keep reading to discover the top ten financial tips for small business owners and why they can shape the economic future — and ultimately the success — of your small business.

1. Create a Budget

The first step in this “business finance for dummies” crash course is to create a budget. While it’s perfectly fine to utilize loans when you’re first starting, opening multiple credit cards without an end goal can lead to financial failure.

With that in mind, create a budget that differentiates “wants” from “needs.” Any critical needs that don’t fall under the budget can be purchased with loans – but ensure you have the financial means to pay off the debt in a timely manner.

Wondering how to organize bills for small business so that you have a handle of how much of your budget has been spent? Spreadsheet software (essentially digital financial planners for small business owners) is the best way. You can also opt for a professional accountant to service your account and help you stay on top of your expenses.

2. Invest Back in Your Business

Growth is critical to your small business, and it doesn’t necessarily mean that your business will grow into a massive, worldwide corporation. Growth can also be measured with smaller benchmarks, such as more staff, further training, better equipment, etc.

This is where your budget will come in handy. When you start to see some gains while managing business finances, set aside some money and re-invest it to advance your business growth.

3. Don’t Forget To Pay Yourself

One of the small business finance tips that tend to get overlooked – especially in the beginning – is paying yourself. You are in control of your business and should be compensated handsomely. This will help reduce the risk of needing to pull from your business finances to pay for personal needs, which could sabotage your business’ bottom line.

4. Cut Down on Costs

Some businesses may have plenty of revenue but still find themselves coming up short. Sometimes, it’s not a matter of not making enough money. Sometimes, there is too much expenditure that is running down the business.

For example, ditch high-priced advertisements like billboards and radio commercials. Opting for social media marketing, like Instagram posts and PPC ads, are far cheaper. Not only that, but they tend to cover more ground, and you can track your ROI (return on investment) accurately.

5. Don’t Fear Loans

Some articles on financial tips for small business owners may tell you to avoid loans like the plague. The truth is, loans shouldn’t be feared, as long as they’re a good investment for your company.

The two things to remember are:

While there is always a risk when taking out a loan, the pros tend to outweigh the cons as they can help your business grow dramatically. Make sure to pay off the debt as soon as possible. Refinance high-interest debts when available.

6. Create a Streamlined Billing Strategy

If your small business entails sending out invoices, you might struggle with actually getting paid. That’s why creating a streamlined billing strategy is critical and getting creative when needed is essential.

For instance, if a customer is struggling to pay invoices promptly, you might consider offering a discount if paid within the first week of being billed. This gives them an incentive to pay quicker, and you get your money when you need it.

7. Focus on Return on Investments

You don’t have to take a class for financial training for small business owners or read a financial management for dummies book to know about return on investments, otherwise known as ROI. ROI essentially maps out how much “return” you get from your “investments.”

Why is this important? Well, many small business owners tend to focus on expenses – which is critical when understanding your business finances. However, it’s not the only thing to pay attention to.

Focus on your ROI, such as purchases on new technology or investments on better marketing. New technology can lead to a more efficient and streamlined business that cuts costs and intrigues customers. Better marketing can reach a larger audience, potentially creating new clientele and greater profits.

Is one investment doing better than another? Are you wasting money on a particular asset that isn’t contributing to the success of your business? Then follow this important tip: get rid of the poor ROI investments. Put more money into the positive ROIs and watch your small business boom.

successful business investment

8. Spread Out Your Tax Payments

One of the best characteristics of small business owners is determination, but so is planning ahead. And if you’re not planning ahead for your tax payment, you will be in for a world of hurt come tax season.

Although owning a business provides freedom in many ways and may also equate to big profit, none of that comes without a price – and this price will be paid through taxes.

The tax for your small business can come as quite a shock, leaving some small business owners wondering how they will pay it. Don’t land in that boat. Instead, spread out your tax payments every month. That way, it won’t be as daunting, and you can keep your business in good standings with the IRS.

9. Automate Bill Payments

Running a small business is not the easiest thing in the world. An owner has many things on their mind, which can sometimes be overwhelming. Not only that, but with so much happening around you, it can be easy to fall behind on payments.

Falling behind on bills isn’t a good thing – especially for businesses. Besides for hiking up high interest charges, this can hurt your business’ credit line, making it challenging to take out loans in the future.

Avoid the heartache of missing payments and the nuisance of paying them by opting for automated payments.

10. Get Help

You can read plenty of small business finance tips on the internet. You can find out everything from how to organize small business finances to the best ways to cut down costs. However, this doesn’t always mean it will be applicable to your business.

If you’re still struggling with how to handle the financial aspects of your small business, it may be necessary to seek professional help. There are courses dedicated to financial training for small business owners. Many banks are also willing to work with small businesses to find the best route that works for them.

How Chat With Humans Can Help

helping business achieve success

Now you know all the top tips for financing a small business, from creating a budget to focusing on ROI. With that in mind, one investment you might consider for your business is managed live chat.

Managed live chat customer service has one goal in mind: to capitalize on website traffic. With a top-notch managed live chat support team, visitors can easily get their questions answered, and comments heard. Not only that, but it builds trust and increases productivity, which can lead to a higher chance of guests becoming customers. The result? Larger profit margins for your small business.

Our managed live chat online company is different from other managed webchat businesses. That’s because our team focuses on:

Needless to say, managed online chat can be an excellent investment for your small business, and we’re here to help. Our managed live chat services are quite extensive, and we will try to accommodate all of your needs.

The best part is that our managed live chat pricing is affordable and can fit into almost any small business budget. Not only that, but it will create a valuable ROI you’ll be happy you decided to invest in.

Financial Stability is the Ultimate Gateway to a Successful Small Business

Managing a small business is a challenge, especially when it comes to the financial aspect. The good news is that, with these small business finance tips, you should have no problem creating a streamlined and successful small business that won’t succumb to financial pitfalls.

What are you waiting for? Contact us today if you’re ready to invest in live chat, a small business component with a high ROI. We have representatives standing by to help with your live chat needs, or you can send us an email with your inquiries.

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