Any business owner will have ups and downs. One of the important things is planning is key with life and business.
One of the largest challenges for business owners is cash flow.
At the core of any business, having back-up funds can be you being able to expand your staff and inventory and invest or not.
The balancing act between incoming and outgoing funds can be altered by delayed payments and sudden large expenses. This is common in small business owners and comes with challenges.
There are currently over 30 million small businesses in the United States currently, according to the Small Business Administration. Which doesn’t seem to derail people from pursuing their dreams.
However keeping the business alive does come at a price, here are the challenges cash flow problems create:
Halting Your Own Paycheck
Many small business owners passed up paying themselves for months at a time to control cash flow. Some entrepreneurs avoided this issue by running everyday expenses through their business. Which may include their phone bill, car payment or, even their mortgage, if their business operated out of their home.
Invest Extra Time
Time is a precious resource, especially when you’re running a business and are responsible for every piece of its operation. You didn’t start the business to do the bookkeeping but to be good at your passion.
The truth is, many entrepreneurs invest large amounts of time in bookkeeping. Small business owners when asked spent as much as 20 hours per week on cash-flow management. With a variety of tasks like handling payroll to invoicing and purchasing. If all cash-flow tasks were eliminated they would repurpose their time investing in other important business like marketing and further developing a product.
First Evaluate Your Business
How can you get back your time? Take a step back and evaluate your individual company’s operations. Also, evaluate how much time you spend on various cash-flow tasks, from invoicing and payroll to accounting, taxes and more.
Set a goal to get back an hour a week.
Now create and implement that plan, but be mindful that you’re repurposing the new time available in a way that supports you or the business better than before, be it spending more time with family or with customers.
Learn How Technology Can Help
The speed of business is changing, and technologies and services are giving small businesses the tools they need to play with their bigger competitors.
Here are four ways technology is evolving to help you salvage your time:
Invoicing: New technologies are providing entrepreneurs easier and faster ways to manage customer invoicing so they can get paid faster without the constant chase to do just that. Research solutions are also making the payment experience seamless and simple for customers, thereby saving companies time, too.
Checkout financing: Machine learning and predictive analytics are the driving forces revolutionizing funding options to help resolve cash-flow issues for small businesses. This means that eventually, all entrepreneurs will be able to access capital in minutes rather than weeks or months, thanks to automated underwriting.
Accounting software: The majority of every accounting process can be automated, and accounting software can provide greater detail in the event of an audit. Quickbooks make it easy to connect into other third-party services companies might use to simplify cash-flow management.