Small Business Finances: 4 Pitfalls Entrepreneurs Need To Avoid
Small business finances can quickly spiral out of control, if they are not kept in check. Fortunately, there are four major things entrepreneurs can do to keep small business finances contained, and with minimum effort.
Keep Equipment Up To Date
Out of date equipment can severely impact small business finances. Last gen computers, old machinery, worn out vehicles, and more end up reducing productivity, and maintenance cost can become frequent and expensive. In order to resolve this, small business owners turn to leasing agreements. Leasing equipment is a debt-free solution, with options for built-in maintenance, staff training, and the ability to upgrade as new models become available. Leasing agreements cover everything from computers and workstations on up to heave machinery.
Try Going Paperless
Going paperless was a fool’s errand a few years ago. These days, with the advent of cloud computing and subscription-based accounting services, entrepreneurs can keep expenses to a minimum. Gone are the days of going through reams of paper to make copies and backup records, when a digital file will do. Copiers, fax machines, filling cabinets, and office supplies are going by the wayside as more small businesses switch to the paperless model.
Your Small Business Finances Are Tied To Receivables
It almost goes without saying that receivables are integral to any successful small business. However, when open invoices have aging schedules of 30 days or longer, waiting on customer payments can place a major strain on small business finances. To resolve this issue, entrepreneurs take advantage of accounts receivable financing. Accounts receivable financing provides a turnaround on open invoices within 24 hours, giving small business owners a healthy cash flow while eliminating the need for both payment schedules and collections.
Keep A Close Eye On Your Supply Chain
Everyone wants to make money, and third parties in your supply chain are no exception. Middlemen sometimes tack on extraneous costs which by themselves, may not seem like much, but they add up. Take time to periodically review the costs along your supply chain, and stay on the lookout for suppliers and sources that can offer the same products and services for less. Maintaining a streamlined supply chain can greatly improve small business finances.
Talk To The Experts
At BG Capital Funding Group, we specialize in solutions for small businesses. Whether your business needs better equipment at a more affordable rate, working capital, or a means to stay on top of receivables, we can help. Contact our offices today to learn more about improving your small business finances.