Dodge The Issues That Cause A Young Company To Crash

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StrategyDriven Managing Your Finances Article |Business Success|Dodge The Issues That Cause A Young Company To CrashDid you know that over ninety percent of businesses fail in their first year on the market? This shows you how risky setting up a company can be. It’s very much a lottery whether your company is a success and survives for the long term or even beyond the first couple of years. Why is this? Well, first, there’s the competition. Thousands of new businesses open each year and it makes sense that customers are not going to buy from them all. Instead, they are going to pick the ones that are providing the most appealing options or the best price. In some cases, it’s possible that the winner won’t have either of these factors on their side but will still come out on top. We’ll discuss why that might happen a little further down.

The good news is that once you open your business on the market, you can avoid most of the issues that cause it to fail. This can be related to financial decisions, marketing and promotion or the routes you take to build up your brand. Let’s get started and we’ll begin by exploring visibility.

Poor Visibility

If your business fails, then it could be because you have a poor level of visibility. Visibility is all about how easy it is for customers and potential customers to find your business online. This will depend on your marketing efforts and how successful your campaign has been. Some businesses have no trouble getting to page one of the SERPs for their targeted keywords. Others will struggle to get to page ten and most consumers won’t even get up to page two. The bottom line here is that if you don’t make the right choices with your promotion and marketing then you will be dead on the water.

Mistakes here can be both minor and complex. For instance, a minor mistake is thinking that marketing is one and done. It isn’t and you should be thinking about incorporating it into your monthly business budget. A more complex mistake is based on the type of campaign that you choose to run. Ultimately, you need to make sure that you are taking steps to run a targeted promotional campaign. Unless your business is already successful, you’re not going to be able to focus on every area of the market. You need to research your target audience, identify where they are online and build your marketing campaign around this. For instance, you don’t need to include every social media network if your target customers don’t use Facebook and Instagram.

Overspending

It is possible that you are overspending in your business. If you end up in the red running your company, then you’re not going to last much longer on the market. You need to make sure that you are keeping your business books healthy. While a business can start with zero profitability and making a loss, this is never going to be a sustainable business model. Instead, you need to think about working to ensure that you are making money with your company. So, how do you avoid overspending?

Well, first, you need to make sure that you are aware of the issue. You can do this by hiring an accountant. An accountant will be able to keep a check on spending in your company and make sure that you are staying in the green. They can also help you keep your business model more efficient by telling you where you can afford to reduce spending as well as where you might need to increase it. A lot of business owners will avoid hiring an accountant in an effort to save money.

It’s certainly true to say that an accountant can be expensive, particularly if you take one on fulltime. However, you can save by outsourcing this solution to another business. That way you can cut the cost and still have an expert on the phone whenever you need their advice.

If you are not going to hire an accountant, then you at least want to make sure that you are using an online digital solution. The software can be used to track your spending, keep a check and manage the books. This is also useful when the tax man comes around.

Running Out Of Money

Of course, it is possible that you are making a profit but you’re also running out of money in your business model. This will usually be the case where the budget isn’t enough to sustain the high levels of demand. The instinct here will be to cut back and make sure that you keep costs down by limiting your business model. However, this will typically be a mistake. If you do this, then what you end up with is a business that is unable to grow and that remains stagnant. Customers will quickly turn away from a company like this because you won’t be able to offer anything new or interesting.

Instead, what you need to do is make sure you are injecting more cash into your business model for expansion. Once you fund the expansion you can use your new levels of profitability to pay the cost. You may be able to attract the interest of an investor to fund your business growth. If you can’t do this, you will need a loan. You can explore things like Ondeck loan reviews to find the right option here and ensure that you are getting a good deal. Be aware of interest rates as well as fees as this will determine whether a loan is the right choice for your company.

We hope this helps you understand some of the reasons why a business may fail on the market. If you take this advice, you can avoid some of the common problems and ensure that you don’t have to worry about your business taking the next hit. Instead, you can rise from strength to strength, growing your company. Remember, to ensure longevity, you need to have a plan for your business in place. Always start with a five-year plan and then build from there.

7 Ways To Save Money On Equipment For Your Business

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StrategyDriven Managing Your Finances Article | 7 Ways To Save Money On Equipment For Your Business | business equipment | entrepreneurshipLots of companies can end up overspending on equipment. Whether you’re buying office furniture or industrial machinery, here are seven tips to keep the costs down.

Shop second hand

Used equipment is always cheaper than brand new equipment. You do however need to be wary of the condition. Older equipment that has been well used may be more likely to break. For this reason, you should always inspect such equipment in person before buying.

If you’re buying used equipment online, make sure that a description of the condition and photos are provided. It could also be worth buying from a reputable seller – read reviews to see what other customers have to say.

When it comes to general equipment, it could be worth looking out for company closures in your area. Many companies will be selling equipment for cheap simply to get rid of it – some of it may be in very good condition.

Look out for sales and coupons

Dealers of both new and used commercial equipment may have sales throughout the year. A popular time to hold a sale is in January, whilst the Black Friday weekend is another popular sales period. Also look out for off season sales on seasonal equipment – commercial mowers may be cheaper to buy in winter when there’s less demand for gardening equipment. You can also check some great suggestions here for a professional mower.

You may also be able to grab discounts by using coupons. These can be found on coupon sites or by signing up to commercial equipment retailer mailing lists.

Avoid splurging on gimmicks

It’s important that any equipment you buy is appropriate for your needs. Try to avoid splashing out on equipment that’s more complex than necessary. If you’re only looking to do some basic printing, you don’t need a heavy-duty industrial printer capable of printing 60 sheets of paper per minute – a basic commercial printer will do the job and will save you money. Only high end niche businesses are likely to need the most complex equipment available – if you’re starting a printing company, a heavy duty printer might be more suitable.

Hire single use equipment

A popular mistake made by many companies is buying equipment that will only ever get used once or twice. By hiring this equipment, you could save a lot of money.

Hiring equipment can also be sensible if you don’t have the storage space for such as equipment. For instance, a construction company may hire a crane rather than buying one. This could save money having to create extra warehouse space.

By shopping around, you can find the best equipment hire prices. Make sure that the company has a good online reputation so that you know you’re hiring good quality equipment. A good company will keep all equipment well maintained – although you may still be liable for any damage you cause.

Consider energy efficiency

Energy-efficiency is an important factor to consider when it comes to buying machinery. A machine that consumes a lot of energy will cost you more in energy bills. Older equipment is likely to be less energy efficient than modern equipment, which is something to consider when buying used equipment. You may be able to find information on the energy efficiency online, as is the case with these energy efficient desktop computers.

Know when to repair, when to replace

You can also save costs by knowing when to repair and when to replace equipment.

Choosing to repair equipment could save you money in many instances. You can find all kinds of niche parts online from a wafer ring/frame to a new monitor screen – if you feel up to the challenge, you could do your own repairs. Alternatively, you could hire a repair technician to do repairs for you – this may still be cheaper than replacing with certain equipment.

You may want to consider replacing equipment if it is old or has broken numerous times in the past. It’s possible you may be able to sell old broken machinery for parts – this could help give you some money to put towards a replacement.

Warranties or contents insurance may be able to cover the cost of repairing or replacing machinery in some cases. This is worth looking into before you make any decisions.

Maintain your equipment

You may be able to stop equipment breaking in the first place by keeping it well maintained. Certain maintenance may be able to be carried out by your employees, whilst more complex equipment may need to regularly serviced by a professional technician (such as construction vehicles or medical machinery).

Cleaning is often one of the most important maintenance tasks – this is not just a matter of health and safety but also a way of keeping machinery working properly. Dust build-ups can affect many types of machinery and are a common cause of computers failing. If there’s a lot of dust in the air, you may be able to install an extractor fan or use an air purifier to keep it clean.

You should also be careful of environmental factors like cold and humidity. Certain machinery may break if it is stored somewhere that is too hot or too cold. Agricultural machinery for instance may need to be kept indoors when not in use and covered up to prevent damage from rust.

Setting Up Your Small Business for Accepting Credit Card Payments

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StrategyDriven Managing Your Finances Article |Credit Card Payments|Setting Up Your Small Business for Accepting Credit Card PaymentsIf you own a small business, then you should be aware of how important it is to offer your customers the option to pay via credit card. Without this option, you may find yourself actually losing money. This is because, many times, people will walk into a business already expecting there to be a credit card payment option.

If your business doesn’t offer this, then the customer might not have any other choice than to cancel the sale. With today’s technology, not many people still carry cash on them, or at least not a large amount of it. Paying with a card is quick and convenient.
So, how can your small business start accepting credit card payments? Read on to learn more.

Choose a Payment Service Provider

With merchant accounts becoming a thing of the past thanks to their contracts, many hidden fees, and their inability to provide multiple services, payment service providers are on the rise. Payment service providers are an all-in-one payment and processing system. These providers allow for small businesses to accept both credit and debit card payments without the need to open a merchant account.

Any associated fees using a payment service provider are more clear than when opting for a merchant account. And your merchant account is part of the payment service provider system. With a payment service provider like Dynamics GP Credit Card Processing, you can track inventory, manage accounts, deposit funds, and much more!

Choose a Payment Gateway

The payment gateway secures and encrypts customer information when they make a purchase through your website. It then sends the information for approval. It’s then either approved or denied instantly.

If approved, the payment is complete and the funds are deposited into your account. Many payment service providers include a gateway with their system, but others require you to purchase one separately.

Purchase the Needed Equipment

You’ll also need to be sure that you purchase all of the necessary equipment for accepting credit card payments. This differs depending on where you’d like these payments to be made.

Online

For online purchases, you’ll need a merchant account with a payment gateway, or you’ll need a payment service provider that includes both of these. You can also buy a virtual terminal, which is software that’ll turn your computer into a credit card terminal perfect for accepting purchases over the phone.

In the Store

For purchases made in the store, you’ll need a merchant account and a traditional credit card terminal or a point of sale system. Either option allows the customer to swipe, tap, or place their card into the terminal for payment.

Smartphone or Tablet

Mobile card readers attach to your smartphone or tablet and allow purchases made from swipe cards or chip cards. This is a great idea for food trucks, massage therapist, and other on-the-go businesses. Most point of sale providers offer this service.

Accepting Credit Card Payments Is Good for Business

Accepting credit card payments is the best way to ensure that your customers can make a purchase whenever and wherever they may be. Without credit card acceptance, you may find yourself losing business. For more information on the business world, be sure to check out our Insights section today!

Common Financial Problems Start-Ups Face And How to Solve Them

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StrategyDriven Managing Your Finances Article | Entrepreneurship | Business Financial Problems | Common Financial Problems Start-Ups Face And How to Solve ThemAs an entrepreneur managing a start-up business, there are many common financial issues which businesses have to face. From start-up capital to a lack of investment, there are many potential aspects which can become mismanaged. However, although it may not be possible to avoid these issues, there are ways that you can solve them to maintain your financial security for the future and ensure that your business is least affected as possible.

1. Bad Credit Scores

One of the greatest stumbling blocks for entrepreneurs looking to start up a business is their credit score. A bad credit score can make it increasingly difficult to get loans to increase the funding for your business, among other important aspects. However, a bad credit score is not permanent, and there are procedures that you can follow to increase your credit score, such as bad credit loans. Taking out small personal installment loans for your personal finances and paying it back on time will mean you can increase your credit score and show potential investors that you can manage repayments on a routine basis. Therefore, when you look for funding your business using a loan, you will have an easier time to get one.

2. Lack of Funding

A lack of funding can also be a big hindrance to potential start-ups. Many entrepreneurs look to their own savings accounts to fund their businesses, and you can build up your funds in terms of this by saving a little every month and by choosing a savings account with a good interest rate. If this fails, you should consider getting a personal loan off a friend or family member, as this will be easier to repay and will not affect your credit score. However, if this is not possible, there are many schemes and funds which can help you to increase your fundings, such as government small business funding as well as grants and awards run by investors from large businesses.

3. Invoicing Issues

Another common problem for start-ups is the problem of invoicing. Writing and organizing invoices can become a large issue if your clients are not paying on time or if you have not organized your invoices efficiently to ensure that you know when you are being paid. To solve this problem, you should agree with your clients when you will be paid and create a clause on your invoice, which states this. Not only this, but you should not be afraid to contact your clients via email to follow up on these payments and ensure that you are paid by the expected time.

4. Disorganized Accounting

Many businesses also suffer from disorganized accounting systems, which make it difficult to budget and file your tax return efficiently. To ensure that your accounting is succinct, clear, and updated, you should employ a professional accountant who can help you to clear your accounts and prepare for the end of the tax year. In these cases, you should also consider downloading a business finance app which can help you to track your expenditure, keep copies of receipts and help you to forecast your cash flow and budget in the future.

3 Surprising Ways Small Businesses Waste Money

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StrategyDriven Managing Your Finances Article |Managing a Small Business|3 Surprising Ways Small Business Waste MoneyWhen you are new to the business world, mistakes are an unavoidable element of your learning curve. You are still in the process of defining how to become a leader, how to run a company, or simply how to share your business ideas in a way that appeals to investors. Let’s get things straight from the start: Not everything you do will be perfect. It doesn’t have to be; nobody was born a knowledgeable entrepreneur. Mistakes are a stepping stone in building up your experience, and as such, you shouldn’t be afraid of them.

However, while some mistakes can be an opportunity for self-improvement, others can present dramatic risks for your business. Indeed, some errors can be costly. What makes them even worse is that money-wasting mistakes could easily be avoided if you were to work with an expert at your side. Indeed, if there’s one good reason why small business owners shouldn’t multitask, it’s this one: Every mishap caused by lack of knowledge or attention will drag your finances down!

Online marketing campaigns are easy to set and to scr*w up

Digital marketing campaigns are not only a popular strategy to launch your company, but the general feeling you get from a quick search on the Internet is that you can manage them in a few clicks. The truth is slightly different. While digital marketing tools are readily available for all to use and enjoy, it doesn’t mean that digital marketing is simple. On the contrary, unless you master essential digital skills such as web design, social media communication, and PPC, you can’t profit from your activities. You’d be surprised how easy it is to waste money in a poorly managed PPC campaign – we’re talking thousands! Leave those to someone who knows how to make the most of your digital presence.

Keeping on top of your bookkeeping and tax is HARD

Most small business owners choose to keep their books in-house. Unfortunately, unless you’re a trained accountant, your financial reporting might be affected by involuntary discrepancies. Errors of omission, when you accidentally fail to record a transaction, or transposition errors, when you mistyped data, can lead to more dramatic budgeting and tax issues. Additionally, managing financial reports is a specialized and time-demanding activity that is best left to experts such as Brilliant Tax. Entrusting professionals with your bookkeeping frees up valuable time, which you can repurpose on income-generating activities.

You’re wasting too much energy throughout the day

Did you know that commercial buildings account for around 20% of energy consumption in the US? Businesses don’t use a fifth of all the energy in the United States. Heating, cooling, and lighting habits in offices and commercial buildings can lead to vast wastes of energy. Many companies admit to leaving windows open while using the HVAC system, for instance. Others choose to leave the lights on throughout the night, even after the building has been deserted. Simple changes, such as making your staff aware of waste behavior can help to cut down your energy bills at the end of the year.

Small businesses have, by definition, a limited budget. You can’t afford to throw your capital away if you’re trying to build up momentum. Identifying areas of improvements can finance your future success.