There’s nothing quite like being your own boss, but running a small business can be a huge headache at times, too. When you’re first starting out, it can be difficult to decide which goal to tackle first and how to spend your time. We have put together a list of tips to help you better manage your people, time and money so that you can stop stressing and enjoy the wild adventure that is entrepreneurship.
1. Separate Your Personal and Business Finances
This is a step that many small business owners tend to skip, especially in the early stages. However, it’s important to separate your personal and business finances as soon as possible. It’s very difficult to manage your finances well when your accounts are muddled, so start as you mean to go on.
You should open a business bank account to keep a log of all of your business-related transactions, because this will help you get a much clearer picture of how your business is faring financially and save you hours when tax season arrives.
It’s also a good idea to take out a business credit card, as this has a much higher limit than a personal one and won’t affect your personal credit score.
2. Use Accounting Software
As a business owner, it’s natural to want to save as much money as you can but the DIY approach is not cost-effective in the long term. It’s worth paying for good quality cloud accounting software like Xero, as you will reap the rewards in terms of time and headaches saved. Cloud accounting software makes it very easy to stay organised and keep track of receipts and invoices, as well as helping you to maintain an air of professionalism.
3. Be Super Scheduled
As a business owner, there are always a hundred and one tasks demanding your attention. To ensure that you achieve what you want to achieve, you need to diarise it. For example, if you need to devise a marketing strategy but keep getting bogged down with client work and management, put a strategy session on your calendar. This way, you have a commitment to stick to and are far less likely to let it slip further and further down your to-do list.
4. Invest in Education
One of the best ways to improve your business is to further your own education.
Yes, Google is a wonderful resource, but you can lose hours falling down internet rabbit holes when you don’t know where to look. Often, you save a significant amount of time by investing in a course or mentorship program that will show you a clear-cut path.
Although an upfront investment is required, you will save money in the long term by avoiding mistakes and skipping failed experiments. Educating yourself will also allow you to improve your business and make more money.
5. Hire an Accountant
Accounting software certainly does make your life a lot easier as a small business owner, but it’s not enough. Hiring a quality accountant who can not only do your taxes but also offer financial advice will dramatically improve your financial situation and help to protect your business against tough times. It always pays to stay on top of your numbers, but as a business owner, you have a million other things to concern yourself with. A quality accountant will ensure that you’re on the right track, help you to understand your current situation and identify areas for improvement that will allow you to build a better business.
The above seemingly small steps will make your life as a business owner infinitely easier, and put your company on the path to success. It’s important to get serious about your finances and separate your business and personal bank accounts, invest in accounting software and hire a go-to accountant who can offer expert financial advice. You should also be super scheduled and make time to work on your business, as well as in it. Meanwhile, investing in your own education is a smart decision that will spare you from many wrong moves later on. Many small business owners want to bootstrap, but investing your time and spending a little money now will certainly pay off later on.
Contact us to discuss how we can help you.