Spring financial strategies for small businesses
Spring is one of the brightest and most positive seasons - both literally and in terms of the new beginnings it can symbolize. It may also serve as the perfect opportunity for a small or medium-sized business to implement some changes to operations, particularly those pertaining to all matters fiscal.
For some organizations, this is all but essential if the most recent winter constituted a down period for the company, characterized by low revenue and other problematic issues.
"Small businesses can use spring as an opportunity for new financial beginnings."
With spring in full swing, let's examine how small businesses can improve their finances in time for summer, including the proper use of alternative credit data:
Assess the state of the company's finances
Start by meticulously examining the overall financial picture of your business. Pay especially close attention to expenses paid with both company credit and checking/debit accounts. Compare this to sales and profit numbers to get a sense of your financial solvency (i.e., are you in the red or in the black?).
According to Entrepreneur magazine, spring is also an apt time to determine if you'll be ready for the company's next tax filing deadline -— most likely the end of June. Try to set aside enough from what's budgeted for necessary operating expenses. If you're uncertain if you can, contact your regular accountant to hear their assessment and advice.
Create savings opportunities with sustainability
If your company hasn't yet embraced sustainable concepts, now is a fine time to start - especially in light of the renewal and growth that characterize spring.
New York-based financial institution Dime noted that even basic changes like printing in grayscale and using paperless methods whenever possible can help SMBs save money. The community bank also indicated broadly adopting environmentally friendly practices, including full digitization of all files and using a cloud-based platform, can be even more beneficial.
"Find out exactly what does and doesn't work in your sales processes."
Examine your sales process - and retool if necessary
You should exhaustively examine not only the bottom-line figures stemming from sales, but also the methods and practices by which your company handles the process.
The rapid rise of analytics means that business intelligence tools to quantify sales are affordable even for small firms with fairly tight budgets. According to Small Business Trends, sales analytics can and should offer valuable actionable insights about your customers, specifically how they interact with you and what isn't working for them.
Start thinking outside the box
Last but not least, it is critical for you and your company to keep an open mind regarding new financial concepts. For example, don't be put off by the relative newness of tools like alternative credit. Small businesses are turning to the data culled using such methodology more and more frequently. These companies gain a better understanding of their customers and financial reliability, even if they don't appear perfect according to traditional credit-scoring models.
PRBC Mainstreet can be just the ticket to better your business this spring. Contact us today to learn more!