Business Hints July 2010

5 Steps to Whipping Your Small Business into Financial Shape

Good financial management can be a challenge for the small businessperson. Here are the five quick tips for better money management.

1.   Recognize your limits

Don’t let enthusiasm for your field get the better of you. Energy, passion and love for your work are great (and necessary) virtues for the entrepreneur.  To keep on track, spend a few minutes taking stock of your financial and human resources. How much money do you really have?  Recognize your limitations, accept them, and then push on them responsibly without breaking the bank.

2.   Cut out the fluff    

Focus on what you do best. In small business, it’s terribly important to have a rock-solid idea of what you do, the value that you deliver to customers, and how you’re doing it. Part of that, though, is having a firm idea of what you don’t do.

3.     Worship money

Make the necessary cost cuts, even if it hurts in the short term. Exploit every opportunity available for stoking sales and closing deals. Think outside the box on both sides of the ledger. You’re in business to make money, right? Keep your eyes on the prize.

4.      Be flexible

The only constant in business is change, be responsive to change. Keep an eye out for new timesaving techniques, new threats to your established relationships with customers, and new competitors in the industry. Consumer tastes change, be prepared to make the changes.

 5.      Get some outside advice

If you are like most small businesses, a fresh set of eyes and ears will give you a new perspective. Maybe the old routine that you have fallen into is actually holding you back. Go to someone you trust and ask them for an honest (no holds barred) look at your business and make suggestions, you may not use any or all of them, but there may be a new perspective.