25 Financial Management Tips for Entrepreneurs

checksuccessEntrepreneurs are experts in their field but when they first start out many do not expect to be responsible for so many financial decisions. The following list will help you consider what practices you may be overlooking and need to put in place.

  1. Setup procedures to get bookkeeping down to a science.
  2. Use projections to forecast cash flows.
  3. Build relationships with bankers.
  4. Get information on financing.
  5. Build a team of experts.
  6. Surround yourself with people who are smarter than you.
  7. Delegate to people who enjoy doing the tasks you hate.
  8. Get to know the main aspects of money management.
  9. Stay in the know about changes in your market conditions.
  10. Know what goes into a budget.
  11. Watch your costs closely.
  12. Aim to fund the business with adequate cash flow.
  13. Keep your financial ratios in line.
  14. Take a conservative approach to projecting sales.
  15. Remember that revenues and expenses rarely move at the same rate.
  16. Use marketing ratios to expand on what works.
  17. Find out what goes into a request for proposal.
  18. Build a credit profile for your company.
  19. Invest in assets to strategically add value to your business.
  20. Always put the company’s cash to work for you.
  21. Look for investment opportunities to multiply profits.
  22. Be careful when choosing debt over equity to cover the cost of growth.
  23. Make income producing activities a priority in your day.
  24. Understand what you are responsible for in accounting, tax and business law.
  25.  Learn to appreciate the value of numbers.

The use of knowledge is power. As you go forward, which of the tips can you implement now that will be most helpful to your business?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Free Resources That Help Entrepreneurs Save Money and Add Value in Their Business

freebizresourceThe fourth quarter is a great time for entrepreneurs to create a budget for the coming year. There are two sides to the budget equation. First is the money that you expect to come in. The other side is your costs. Let’s take a look at free alternatives to what you pay for in business.

Every business benefits from advertising and promotion. Ignore this activity and no one will knows about you. Do it well and you can create an endless stream of sales flowing through your funnel. Social media makes it much more affordable to advertise and promote your products and services online. The most common platforms are Facebook, Twitter, LinkedIn and Youtube but be careful because although they are free, you pay the price in the amount of time you spend there.

If your business pays high consulting fees consider free advice from SCORE. Although it does not replace the relationships that you build with your core team, the guidance that you receive in management and marketing, for example, can be a good alternative to racking up hourly charges for quick questions that you need answered. Using free resources like those offered by SCORE also lets you figure out how best to take the next step before hiring a marketing pro. You might also consider doing research on your own if you are not strapped for time. There are volumes of articles written by professionals that you can access online.

Another drain on profits are your phone costs. In years past it was common for companies to pay for LAN, fax, and cellular lines. Today free and low-cost replacements are VOIP services such as Skype and Google Chat. You can also eliminate the costly expense of fax lines, ink and paper by send and receive faxes directly on your computer.

What resources can you use to spend less money in business?

It’s your time to share in the comments below. Now that you have a few ideas, think about where your business can benefit from low-cost or free alternatives.