A brief guide on how to make management tasks go smoothly
In an increasingly competitive and stressful environment, many small business owners are challenged by daily business practices such as money management. If you’ve found that keeping up with invoices, dealing with payment processing, and sticking to a budget are constantly bringing you stress, it might be time to look for some outside help. Start by getting support from a reputable accountant who can help with everything from investing and banking to creating a budget you can live with. Then, look for ways you can get organized and make daily tasks easier to perform.
Get some protection
Every business needs a little peace of mind, and you can get exactly that by forming an LLC, or limited liability company. This will allow you to separate your personal and professional finances, ensuring that you won’t be held responsible for debts accrued by your business, and it will also provide some tax benefits so you won’t be in for a nasty surprise when spring rolls around. Because each state has separate rules, it’s essential to do some reading so you’ll understand the requirements for forming a Nevada LLC, particularly when it comes to naming your company. If you’re on a tight budget, you can save some money by filing the paperwork yourself or hiring a formation service rather than an attorney.
About that budget…
Even if you already have one, it’s a good idea to take a second look at your company’s budget to make sure it’s realistic. Go over your expenses to see where cuts can be made without causing any issues; there may be a few areas where you could be saving money, such as on shipping costs or order fulfillment. In addition to making room in the budget for variable expenses — such as utility bills, for instance, which will change from month to month — don’t forget to add a little padding for unforeseen costs, such as repairs or maintenance.
Even if you have an airtight budget, there are still some financial issues that could pop up from time to time. For many business owners, chargebacks create major problems that leave them owing hefty fees, and often they aren’t even aware of the process until it’s done.
First, it’s important to understand what a chargeback is. Different from a refund, a chargeback occurs when a customer makes a complaint to their financial institution, which then removes a particular amount of money from a business’s bank account and returns it to the customer. This typically happens as a result of identity theft, but a customer can request a chargeback for a number of reasons, including to avoid a large restocking fee or to bypass a confusing return process.
You can help to prevent chargebacks by being clear about your return policies and shipping schedules and by making sure transactions made at your business are correctly labeled within payment platforms like PayPal. The easier you can make the purchasing process, the better.
Work on your credit
Securing lines of credit and building up your financial wellness is essential when you own a small business. Because a business line of credit allows you to borrow up to a certain limit, you’ll have much more flexibility than you would with a regular loan. However, you may need to have at least a few years of business ownership under your belt to qualify, and some lenders require collateral for lines of credit that exceed a certain amount. It’s essential to make sure you understand the terms completely and are fully prepared to pay back the entire amount so you don’t find yourself in over your head. In fact, it’s advisable to start off with a small line of credit and pay it off in order to build up a solid history; this will help you secure loans in the future.
Taking care of day-to-day management tasks can be stressful, but if you can get organized and plan ahead, you can avoid major issues. Train your employees well and keep communication open, as this is an easy way to prevent problems and keep things running smoothly.
Business ownership is fraught with stressors, and while some stress is good for us, too much can be a detriment to our daily lives. If the stress of running a business feels overwhelming, talking to a licensed therapist like Rebecca Parkey can help you find the tools you need to combat stress and live your best life. Reach out today to make an appointment.