Your business depends on your financial health. Whether you’re going to stay in operation and grow or fail and close up depends largely on your company’s economic status.
And because closing up is not an option, it is essential to continually seek expert advice on how to make sure things don’t go out of hand. Financial management is a never-ending process. So you need to keep up with what’s up, which includes knowing where to get the cheapest, fastest and most flexible commercial funding when you’re firm is desperate for money.
That said; let’s see how you can keep your funds in check amid the complexities of running a startup.
1-Diagnosis the fiscal health of your company
Check how your revenue is flowing. How much are you making and from where? And what amount are you spending for what purpose? Well, these may sound like basic stuff to you, but how often do you do that?
This is one of the tasks you won’t regret outsourcing to an expert— a qualified accountant. In fact, that way you’ll get the time to concentrate on cutting down expenses and maximizing revenues. For example, you can go looking for suppliers with the most affordable dealer spend time finding out what your money wasters and changing your approach.
2-Look for alternative funding
Even as you tread carefully to avoid a financial slip, at times the inevitable may happen. Modern money lenders like First American Merchant know this better. It is no wonder they have provided a variety of easy-to-access and reasonably-priced funding options that you can’t get from your bank.
These merchant funding companies are dedicated to all micro-businesses including those with poor FICO scores, as well as high-risk retailers. When choosing a funding product, make sure to go for whatever matches your business structure.
3-Be strict on Your Invoicing
Your invoicing habits determine how fast you go up the entrepreneurship ladder. Sloppy invoicing will make you lose profits and ruin your relationship with customers. That’s why you need to be strict when it comes to invoicing and getting paid. Be cautious; you don’t want to be earning less than you struggle to make. You need to be collecting all your revenue in time.
And the only way to make this happen is to develop good invoicing practices. Be upfront about pricing and be sure to cover every aspect in depth so that everything is crystal clear to your customers. Credit check all new buyers and request a deposit each time a customer makes an order. When it’s time to get paid, make sure you send the invoice in time and ask for confirmation that it has been received.
Have a specific person monitor payments and chase down unpaid bills. If possible, charge a penalty for any late payments beyond a given period.
Author bio: As an account executive, Michael Hollis has funded millions by using alternative merchant funding solutions. His experience and extensive knowledge of the industry has become a true asset for First American Merchant.