2019 is fast approaching, so now is the perfect time to consider your business finances and how you’ll be handling them in the new year.
Whether you’re thinking of expanding into overseas markets, adding an expensive piece of machinery to your inventory, or launching a new brand from scratch, accessing finance and managing it effectively will often be top of the agenda for you. Just one of the things you should do is have a business plan in place to help you sell your proposition to lenders, if you haven’t got one of these already. You’ll need to work hard at proving it’s both low risk and profitable in order to get lenders invested in your company and ideas. Below, we’ll talk more about how you should be handling your business finances in 2019.
How Much More Should You Borrow?
There are numerous ways to get more money for your business if you’re looking to expand in one way or another. Assuming you don’t have the savings to do it yourself, you may look to asking friends and family for a loan, approaching banks, or looking at angel investors.
Whatever you decide to do, you must only accept financing from another source if you’re sure you’ll be able to pay it back. Make sure you understand the payment terms, going over the small print carefully to ensure there’s nothing you need to be aware of. Something you’ll need to look into is chargeable interest, as this can seriously bump up the amount that you have borrowed.
It’s important to note that your business needs change as it grows, so remember that funding that was appropriate for your business way back when, may not be the correct choice in the future.
Innovative Ways To Save Money
As well as figuring out how you’re going to secure new finance in the new year, you might look into innovative ways to save money so you have more disposable cash to put towards growing your business and venturing into new realms. For instance, you could look into working with suppliers that will offer you a better, more valuable deal. A construction company purchasing welding gloves right here today rather than where they are normally purchased could save a fortune over time, and even buying machinery second hand could help them to save a wedge of money. You’ll need to consider the approaches that are suited to your business.
Staying on Top Of Your Taxes
If you’ve already been operating your business, one would hope that you already had a solid plan in place to manage your business finances. Keeping on top of all of your legal paperwork is essential; if you’re not making payments on time or putting money aside to pay, you will likely receive warnings and fines. You also want to know if you’re entitled to tax refunds and reductions, which is only possible if you’re managing this aspect of your business properly.
Emergency Cash
Having an emergency fund is essential, so if you don’t have one now is the time to start planning. This means you won’t need to take credit out when you experience an emergency, and you’ll have that all important peace of mind.