Having more money in the bank than what goes out will keep you ahead of other small businesses the fail every year! Here are some tips to keep you on the right track.
- Don’t spend all of your investment money! You don’t need to buy “New” all the time or purchase the latest and greatest apps, computers etc. Buying furniture and equipment second hand or using what you already own will save you money.
- Negotiate better rates/terms from your service providers! See if your providers will give you a discount if you the pay your invoice within 10 days or see if they will give you Net 30 to extend the period of time for which you have to pay your bills. As for your bank account see what bank will give you the best rate for a business account and make the switch.
- Avoid fees and penalties! Always pay your bills on time and in full. Submit your payroll deductions on time, and plan your HST remittance!! It isn’t your money to spend.
- Keep up on your billings! As soon as you can bill, do it or make your invoices Due on Receipt; this way you always have money coming in. If your customers are insistent on having terms, offer Net 15 instead of Net 30. Make it simple for your customers to pay you by accepting E transfers, taking credit cards etc.
Following these steps will help your business succeed and grow. Running a business is extremely hard but starting off on the right foot in the “money” department will definitely keep your business on track and cash flow positive.