Thursday, August 25, 2022/Categories: Community News, Bank News, Saving & Planning
There’s nothing small about owning a small business. It’s a massive responsibility that requires huge amounts of time, money, and constant effort. It’s critical to have wise counsel to back you up, assess your financial options, and help develop a plan that’s the best fit for you and your business. Consistency is key in developing a plan for growth. Here are some tips to keep in mind as you look to further grow your business. As is always the case, please bear in mind that Andover Bank doesn’t provide legal or tax advice. Consult your legal and/or tax advisor.
Get (and Stay) Organized
Start every day by analyzing your calendar to get the most out of every hour and the days ahead. Use this time to reflect, reprioritize, and delegate if necessary so that you are not bogged down in administrative tasks. Review your business plan every morning–study it, define it, and always be considering next tasks. Gather the names and numbers of prospects you plan to call each day, and make those calls before 10 am. By attacking this task early in the day, you’ll already be ahead of the game and you’ll be reaching people before they are lost in their day and fresh to tackle the conversation at hand.
Know Your Finances and Keep Thorough Records
As in all of your financial comings and goings, it is absolutely crucial to understand where your finances presently lie, and there is no better way to do this than to keep detailed records of your assets. Keeping your profits up and your costs down requires you to take a look at where you are spending the most, and seeing if there is any way where higher costs can be reined in. One good practice to keep your finances on the up is to treat your business as an entirely separate entity. While it is tempting and easy to write off a car payment or a dinner as a business expense, doing so recklessly can undermine your business and hurt your overall growth.
Always know the full and current state of your finances. With your financial records and projected costs outlined in front of you, you are then able to stress-test your business, seeing how your model will fare with differing and perhaps less forgiving economic circumstances. Knowing these details can help you prepare your business for a tougher market – like we have all had to do with the current pandemic. As they say, knowledge is power.
Have Liquid Assets on Hand
If your business is relatively new or you are looking to start your own business in the near future, it’s important to keep in mind that you will most likely experience considerable volatility for the first year or two. Therefore, it’s essential to have your savings built up to a point to where you can comfortably live without revenue from your business until things stabilize down the road and your business is better established.
It might seem counterintuitive, but the best time to explore funding options may be when your business is performing at its peak. If you’ve had 1 or 2 good years of business you should consider trying to open a line of credit. Banks may be more willing to lend to a business that is performing well and looks really great than to a business that is on the ropes or in the belly of the beast. In trying to get money before difficulties arise, you can keep your loan options open and not resort to borrowing from a harder money lender or more unfavorable financing terms.
Keep the Right Business Partners
There are a lot of different factors to keep in mind as you look to grow your business, and it can be an overwhelming challenge to face alone. Luckily, there are advisors and teams dedicated to helping you grow your business and making the complicated simpler. The Andover Bank Business Team is always your go-to resource at both a personal and business level that you can depend on to assess your needs in order to tailor a financial model that is the best fit for you.
Take Care of Yourself First
Engage in self-care, meditation, and regular exercise. Schedule this time for yourself every day for a more productive and peaceful work day. Encourage any employees you may have to do the same and you will see the benefits in their performance when employees are in good physical and mental shape.
Practice gratitude every day. Stay positive by being thankful and remember to thank your clients, employees, and vendors. Kindness spreads. Gratitude will play a crucial role in creating a healthy company culture and a productive working environment for everyone from the top down. Be present, and find joy in the little things. Success grows from consistent, positive change. Keep moving forward using the tips above for growth, not only in business but in every aspect of your life.