Being a small business owner is no small feat. You need to navigate payroll, bookkeeping, inventory, customer relations and service, and seemingly endless changes to small business tax laws. While starting your small business and being self-employed may be the best thing you have ever done, it doesn’t make managing the stress of being a business owner any easier. If you are a small business owner looking to have your most successful year yet, these tips should help you handle the pressure you’re undoubtedly under while successfully growing your business.
Remember that equipment expenses are tax deductible
If you are facing a stressful money moment because you had to make an unexpected equipment purchase, keep in mind that equipment expenses are a legitimate deduction. While it may not help your bottom line or cash flow at the moment of purchase, it will give you some relief at tax time. You also have the option of writing off the full cost or deducting their cost over a few years. Also remember that if you work from home and have a dedicated working space that isn’t used for any personal purposes, you can claim a home-office deduction.
Update your budget
If you don’t have a budget on paper, you should. Estimating cash flow is one of the smartest decisions a small business owner can make during tough times, because it will force you to look at your cash inflows and outflows in addition to your estimated expenses so that you can make the necessary changes to stay afloat.
Don’t shy away from using software or apps that make the money management side of running your business easier. From W-2 software to help you at tax time to inventory management programs to help you ensure you aren’t over- or under-buying certain products, these tools will allow you to spend less time on your books and more time strategizing ways to grow your business. There are also resources available from places such as SCORE, the national nonprofit support group for small business owners, which offers a free budget template you can use to manage your cash flow.
Bill customers on time, and follow up with late payments
As part of your budget monitoring processes, you need to be diligent in billing customers on time. If you don’t have a consistent, timely billing process, implement one immediately. This may be as simple and affordable as keeping a color-coded spreadsheet for open accounts on your computer. When you bill customers on time, you increase your cash flow and your ability to pay your suppliers.
It’s even more important for you to follow up with late payments and delinquent accounts. Again, you need to implement a process for identifying outstanding bills and contacting customers who owe you money so that you can keep up with payments owed to you. You also should consider adding interest charges or increasing existing penalties for customers and clients who are delinquent on their payments to you.
Continue to advertise
Yes, advertising can be expensive, but if you market on a shoestring budget, you will see some returns that can boost your business when you need it most. If you are a small business with a local customer base, advertising on local radio during peak listening hours is a good way to reach a wide audience for less. It doesn’t hurt to remind existing customers about new product offerings, and it may inform potential customers about services or goods you offer that they didn’t realize you supply.
It’s also a smart idea for small businesses to make use of social media advertising and networking opportunities. Facebook ads can be surprisingly affordable, and you can reach a great deal of local people this way. And remember, one of the best forms of advertisement you can have is a strong online presence, so if you haven’t already, create a website for your business, and be sure your web address is included in all of your advertisements.
There are steps you can take as a small business owner when stressful money moments pop up, and you should take advantage of them. Knowing where you stand with your capital and bottom line with a realistic budget, continuing to advertise on a shoestring budget, and making sure you are getting payments from customers in a timely fashion are just a few things you can do to help your business and have your most prosperous year yet.
Are you ready to take your small business’s advertising game to the next level with content marketing? Contact the Entraspark team today.