6 Tips to Stay in Control Over the Financial Future of Your Business

In order to keep up a successful business, you need to have an eye on the finances. Creative development, inventive advertising, and entertaining corporate events are all well and good, but it’s those dry numbers that really keep you going. Use these tips to make sure you always have a firm grasp of your financial situation.

Keep an Eye on the Statistics

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Image via Flickr by kenteegardin

While combing through numbers is often a dull task, it’s something you simply can’t ignore. Identify the statistics that are most relevant to your industry and look at your marketing, sales, and production stats with larger industry and overall economic statistics in mind. Areas where your company stands apart from the norm need further investigation. For example, if the trend is toward an overall decline in service subscriptions but yours are soaring, find out why and capitalize on this area of the business.

Comb Through the Ledgers

No detail is too small for your attention when it comes to the financial health of your business. At least once a quarter, comb through every last business expense from the obvious purchase of raw materials for manufacturing to the things you may not think about, like the soap in the bathrooms and paper in the printers. Actively search for better prices on everything. Competitors who want your business may offer a lower price, and those pennies add up over time.

Pay Close Attention to Failed Competitors

You probably know all about the most successful companies in your field, but do you know about the least successful ones? Look as closely at the failures as you do the successes. Another business’s bankruptcy may yield valuable information that will save you from the same fate.

Establish a Cash Flow Budget

It’s not enough to know what your income and expenses are if these numbers don’t give you an idea of how much cold hard cash is in the bank. If you’re funding a lot of your expenses with credit and have an unsteady income, it’s even more important to have a close eye on your cash. These funds are essential for paying employees and keeping your business afloat.

Think About Taxes Year Round

Taxes aren’t a once-a-year concern for your business. They’re something you should think about all the time. Strive to take advantage of deductions when possible. Don’t simply look for those that you conveniently stumbled into when April comes around. Plan for them intentionally so you’re not left scrambling when tax day comes.

Stay on Top of the News

Information can become outdated in the blink of an eye, and those well-established strategies you’ve relied on for years could become outdated tomorrow. Subscribe to financial journals and blogs. Read the newspaper daily. Resources like Fisher Investments Forbes publications will help you stay ahead of the trends and on top of the news so you’re never lagging behind.

Financial success comes from knowledge. When you have a close eye on the financial concerns of your business, you’re operating from the best possible place for a healthy financial future.

2 Responses to “6 Tips to Stay in Control Over the Financial Future of Your Business”

  1. Melanie 13 July 2013 at 2:48 am Permalink

    BQ: Can One be considered a effective business lady basically suck in math?

    I usually imagine running my very own business. I stand out in British, Analysis and Financial aspects subj, although not in Math. :L I usually almost fail in Math.

  2. Kevin 14 July 2013 at 10:46 pm Permalink

    List as much as you are able to. Do not be flippant or irrelevant. Try listing them and/or discuss every one of these to produce more insight. If you’re a effective entrepreneur, who began on your own or perhaps inhereted your wealth, I must hear your idea(s) by what produces success so far as you’re concerned. If you wish to let me know a brief story of methods you grew to become effective, please so. Or you simply have 5 stuff you can think about in a listing, that’s perfectly acceptable.

    Thanks.

    Jim – Thanks, that assisted! I’m surprised nobody here has clarified either. This really is my first deliberation over beginning a company. Question why nobody else has these solutions you gave 🙂

    Jim – Thanks, that assisted! I’m surprised nobody here has clarified either. This really is my first deliberation over beginning a company. Question why nobody else has these solutions you gave 🙂


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