8 money management tips for small businesses
Have you ever wondered why some businesses succeed while others fail even though both have bright management teams, passionate employees, and excellent products? 3 words: money management skills!
Owning your small business is definitely rewarding. You’re your own boss, and you’re pursuing your passion and building yourself a future. But even then, some financial challenges are inescapable. In this article, we’re going to play the part of your financial advisor to help you manage your business’s finances.
Here are 8 of the most essential financial practices that will pave the way for your company to succeed:
Set a budget
We know budgeting may not be the most fun, but it’s necessary. How do you set a budget? First, determine how much your business is earning every month. Then, deduct your fixed monthly costs such as bills, salaries, rent, and insurance from your business’s monthly earnings. This will help you determine what to keep paying for to run your business — i.e., what you can afford to spend.
Track your cash flow
This tip is crucial for the survival of your business, especially in the beginning. So, ensure you have enough money in the bank to cover your operational needs. There must be a problem if your overhead is more than your revenue. Identify the root causes early to deal with them effectively before it’s too late. To track your business’s cash flow, sign up for the Etihad for Business platform, which allows you to track your company’s cash flow in real-time.
Pay your bills on time
No one likes to accrue expenses. So, be sure to pay your bills on time to avoid late payment fees that you’re better off saving for your business. If you’re finding it hard to keep track of your bills, Etihad for Business also has that covered! You won’t miss another bill again as you can pay online quickly and easily.
Cut as many costs as possible
We know small costs may not seem like they will harm the financial health of your business. But using your business credit card to pay for a coffee machine and regular lunches for your employees will pile up costs in no time. So, take some proactive measures. For example, reduce your business’s use of paper. It’s just as friendly towards the environment as it is to your pocket!
Start an emergency fund
Emergency funds aren’t just for individuals. Even businesses need them when they encounter tough times, unexpected costs, or customers who are late in paying. So, plan ahead for such crises to ensure your business can stay afloat and meet obligations like employee salaries and bills.
Separate your personal and business finances
Keeping your personal and business finances in one account will make it hard to keep track of incoming and outgoing funds. Plus, it may cause you to spend your business funds on personal expenses or vice versa. So, why not open an account solely for your business? Click here to open one instantly. With it comes Bank al Etihad’s innovative solutions and expert advice to help you grow your business.
Don’t fear loans
Yes, loans can be scary. But sometimes, they’re also what can save your business from failing and help you regain your footing. Loans are an option when you need to make payments, buy equipment, launch new products, or even expand your business team. And lucky for you, the “we are with you” loan from Bank al Etihad is designed to address these challenges that small and medium-sized businesses may run into. With it, no collateral is needed, and you can get up to 175,000 JOD in financing!
Choose the right card
Whether you need a debit or credit card, compare the cards and their perks, fees, and spending limits to find one that meets your needs. Then, head over to Etihad for Business and let it help you manage it and keep tabs on your spending in real-time.
If you’re looking to be inspired, read Ahmad’s story here. Like you, he also had big dreams of growing his business, and thanks to Bank al Etihad’s simplified banking services, he was able to do just that.
