ManagingSmall Business

Finances

Matthew RedingtonFounder of Gangstir Consulting Company

When starting a smallbusiness, there are so manyfactors to take into account.One of them is how to keeptrack of your finances. Ifyou do not have the meansto hire an accountant rightaway, you will need to lookafter the money yourself.Here are some tips to helpyou manage the financesfor your businessefficiently.

You cannot launch a companywithout first having a budgetplan. While it may seemunnecessary when you have notyet generated revenue, it will beused as a guiding tool in everydecision you have to make. Abudget is the basis for allbusiness decisions, so write onebefore you begin.

Budget

It can be tempting, when openingyour own business, to keep yourbusiness and personal accounts thesame. After all, you may be the onlyemployee. However, it is importantto maintain a business accountseparate from your personalaccount. This will ensure that youcan keep track of all businessfinances, and will make any futureaccountant's job much easier.

Separate YourBusiness and

Personal Accounts

Small business owners tend togo all out when they're startingup. This can create financialproblems in the long run. Whileyou will have fixed costs, it isworth cutting down the amountyou spend in every othercategory. Keep costs low fromthe beginning so you have moremoney for the future.

Run a Lean Business

If you are the only employee inyour business, you can adopt abad habit of treating yourbusiness account like yourpersonal account. After all, it'syour money, right?Unfortunately, this tactic canlead to overspending. It is amuch better plan to put yourselfon salary, and stick to spendingthat amount of money onyourself.

Be on Salary

It is easy to make the mistake ofthinking you are generatingrevenue, despite working longhours. However, you are theowner of your business. Yourtime equates to a certainamount of money. Therefore,keep in mind your worth whenlooking at revenue. Chances are,if you're working 60-80 hours aweek, you may be losingmoney.

Know Your Worth

If preparing for a businesslaunch, you may be thinkingabout hiring a slew of people forprocesses such as marketing.However, keep in mind thatthere are several resources onthe internet to help you get theword out about your business,including free marketingplatforms and scheduling tools.

Use Technology