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Common Financial Mistakes Small Businesses Make and How to Avoid Them

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StrategyDriven Managing Your Finances Article | Common Financial Mistakes Small Businesses Make and How to Avoid Them

Finance is at the very heart of every business! Understanding and managing figures pertaining to your business helps to improve the survival rate of your business. Irrespective of the size of your business, correct management of your expenses can pave the way for the smooth functioning of your business.

More often than not, small business owners often fall prey to financial mistakes. No doubt, to err is human, but several small businesses cannot afford to make such mistakes. On the brighter side, many of these mistakes can be easily avoided if paid close attention to. In this article, we’ll dive deep into the most common mistakes small businesses make and how one can avoid them successfully. Read on to find out more!

1. Venturing in Without a Clear Plan

Starting a business without a clear plan for your finances is like walking blindfolded. You may never know when you will falter and fall. Hence, it is highly advisable to develop a business plan that maps out your business finances, the business model and the nitty gritty involved in its implementation.

No doubt creating a business plan is an arduous task which involves time, money and effort. But it sure puts you in a better spot with regard to your future expenses by bringing clarity along the road. It is also a great way to formulate realistic financial projections and set a stipulated budget aside for the coming year. Needless to say, this entire process can help you avoid bankruptcy.

If you are just starting out with your business and looking for professional help, then you must reach out to commercial financial consultants who are highly experienced in this field.  Financial consultants are a one-stop solution for all your financial concerns – be it tackling operational challenges or looking for investment opportunities for your business. These finance experts can help you stay ahead of the game and beat the competition too!

2. Repurposing Previous Budget Plans

A common tendency for many small businesses is to repurpose the previous year’s budget plan for the years ahead. While this process might seem time-saving, it can in fact jeopardise business operations in the long run.

For instance, your business may now be operating in a different financial climate as opposed to the previous year. It can also be hampered by market conditions, pandemics, recessions or even natural calamities. These influences can have a solid impact on the working of your business as consumer spending habits change, and the cost of commodities increases or decreases depending on market conditions.

It is completely understandable to use the previous year’s plan as a benchmark for comparison. However, it is extremely vital to tweak it while keeping the current business circumstances in mind when creating a new budget for the year.

3. Opting for Personal Debts

Businesses often work in a volatile and unpredictable market. These conditions often lead to setbacks for your company, especially in the beginning stages of your business. Moreover, these setbacks can lead to financial repercussions, making it difficult for you to carry on.

More often than not, business owners consider personal finances and savings to fund their daily operations, work on business expansion or recover from setbacks. Hence, an alternative solution is to discover cost-effective low-credit loans.

These emergency loans are quick in nature and tailored specifically for individuals who are on a low credit score. This process ensures you do not need to dig into your personal finances and still manage to stay afloat through verified and genuine sources of finance.

4. Spending Far Too Much Unnecessarily

It is really tempting to get your hands on the best technology that can streamline your business or perhaps heavily invest in marketing activities that can help you reach a wider audience.

It could be a swanky office space that you want to invest in for your business or hiring highly experienced employees. Certainly, the key here is the prosperity of your business as these factors can provide the much-needed push for your business. But maybe being frugal for the time being is a better alternative than going back to zero. Besides, it doesn’t make much sense to spend recklessly while you are still trying to boost profit.

It is imperative to formulate a realistic budget and stick to it for the time being. There are several things that a business can do away with at a nascent stage such as a posh office space or the latest technological gadgets. These little saving tips can certainly help your business function better in the coming years.

5. Failure to Set Up an Emergency Fund

In these uncertain times, one is likely to face unexpected expenses on the way. Emergency funds can be a great way to safeguard your business from these. To simplify, these are the type of savings that help in preventing debts during an unforeseen situation or crisis.

It is highly recommended to set up two types of emergency funds. One that specifically covers the business front and the other that helps with personal finances. Actively saving up can also help in running your business comfortably.

How do you know whether your savings are enough? For starters, consider whether you can comfortably run your business for the next 3-4 months without any flow of income. If yes, then you have enough savings to start with. Ensure to demarcate between your business account and personal account. More often than not, entrepreneurs add their personal expenses to the business account, which leads to difficulty in the management of cash flow.

6. Failure to Focus on Cash Flows

Small business owners often fail to pay attention to their cash flows and profit margins on a regular basis. Ignoring the expenses and revenue generated by your business may lead to many other problems. For example, avoiding the math will hamper your overall business operations in the long run.

Keeping a tab of your daily income and expenses can give you a fair idea of your progress and keep you on top of things. Moreover, this rough estimate can help you project your potential profit margins and be aware of cash flows in the business.

7. Underestimating the Power of Financial Tools

The days of managing business finances manually are long gone. Although this process has its own perks, it is open to several inaccuracies and mistakes. Not to mention it can be cumbersome and inconvenient for a business owner to manage on a daily basis.

There are several accounting software and tools that are inexpensive and can help ease the process of making informed financial decisions. Additionally, these tools offer accurate and reliable information from a single source, eliminating confusion and miscalculations.

8. Not Paying Enough Attention to Research and Marketing

While it’s fairly understandable that this might not be your first priority when starting a business, research and marketing can significantly help you boost business growth. Investing highly in marketing isn’t a requirement in your initial years of work. However, one must keep track of organic marketing methods as these can drive sales and ROI for your business.

Creating a solid content marketing strategy that is focused on your ideal audience is a better approach than running paid ads in the developing stage of working. This can boost brand awareness and brand visibility as you offer information and engaging content to your audience.

The flip side of this is that small business owners end up spending a huge cost of their savings marketing in the initial stages of work. At the very beginning, you might have to experiment with different marketing strategies and some of them might not even fare well, leading to a big hole in your pocket.

Hence, it’s best to gather a fair idea of the market and its working before you dive into investing heavily in marketing-related activities.

To Sum It Up

Starting a business from scratch can often be intimidating and arduous for any small business owner. However, being equipped with sound knowledge of the industry and the best practices to follow can help it stay afloat. While some setbacks are unavoidable, a conscious effort to learn from your mistakes is what makes an entrepreneur stand out from the crowd.

Common financial mistakes such as spending lavishly or not keeping a tab on your cash flows can deeply hamper the daily functioning of your business. It is imperative to reach out to professional financial consultants when stuck at any stage of working.

Remember to actively make decisions to save up and have an emergency fund as a backup. In case of emergencies, it is always a great idea to look for low-credit loans that are quick and accessible to all. Keeping these tricks in mind can help you minimise the risk associated with business and pave the way for a successful venture.

Foolproof Tips to Build a Winning Crypto Investment Strategy

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StrategyDriven Managing Your Business Article | Foolproof Tips to Build a Winning Crypto Investment Strategy

Are you all set to join the crypto investing bandwagon? It’s an excellent decision if you want to make the most of the market opportunity. But you may also feel overwhelmed by all the hype and uncertainty. Well, it’s normal to worry when money is involved, right?

Statistics show that the daily crypto trade volume is $50.9 billion, and it will only get bigger in the future. With so much money at stake, investors need to be extra cautious about the risks and threats in the industry. The last thing you should do is depend on luck. You’ve got to have a winning investment strategy to achieve your financial goals.

So how do you create one? There are no shortcuts, and you cannot take a one-size-fits-all approach. Here are some foolproof tips to get your game right.

Do Your Research

Crypto is a relatively new domain, and there’s a lot to learn, specifically if you are a beginner. Before diving in, brush up on your basics, such as the different cryptocurrencies, the technology behind them, and the market trends.

Following the hype looks easy, but it may not be the best way to start your investment journey. Educate yourself because it can help you make informed decisions.

Diversify Your Portfolio

Nothing gets better than diversifying your portfolio when it comes to any investment, and crypto is no exception. Diversification is the mainstay of a winning strategy because it lowers your risk and helps you weather any market fluctuations.

The best part is that the market has several options, so you can pick different coins to diversify easily.

Secure Your Investments

This one’s a no-brainer because security risks abound in the landscape. Since cryptocurrencies are digital assets, they are inherently vulnerable to cyber attacks and theft. Luckily, a few measures are enough to secure your investments. Use robust passwords, change them frequently, and enable two-factor authentication.

Storing your coins in a secure hardware wallet is a good idea. Bring a crypto recovery lawyer on board if you lose your coins due to an exchange’s negligence. They can help you sue in exchange for hefty compensation if it falls short of compliance.

Play With Common Sense

Emotions have no place in winning crypto investment strategies, so keep them out from the outset. Remember that investing here can be a rollercoaster as prices soar one day and fall the next.

You must steer clear of impulsive decisions based on greed and fear. Think long-term, and don’t let market fluctuations influence your choices.

Stay Up-to-Date

The crypto market is dynamic, so you must stay up-to-date with the latest news and trends. Even the smallest changes in the regulations and prices could impact your investments. But adapting your strategy quickly can save the day.

Follow industry experts, join online forums, and read reputable blogs to stay informed. You may even get some valuable advice to capitalize on an upcoming opportunity from these sources.

Summing Up

Crypto is a lucrative investment opportunity, but only if you stay calm and take a strategic approach. Follow these tactics to stay ahead of the curve and earn big profits. All the best!

How Real Estate Developers Can Stay Ahead of the Competition?

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StrategyDriven Entrepreneurship Article | How Real Estate Developers Can Stay Ahead of the Competition?

The real estate industry is one of the most lucrative and dynamic sectors, attracting investors and entrepreneurs from all walks of life. As the market evolves, the competition becomes increasingly fierce, making it more challenging to gain a foothold and maintain a competitive edge.

Perhaps, it won’t be wrong to say that the pressure is on for real estate developers to stay ahead of the curve. With so much at stake, it’s crucial for developers to keep their fingers on the pulse of the industry, continually adapt to changing market conditions, and find innovative ways to differentiate themselves from the rest.

In this article, we’ll explore top strategies for real estate developers to stay ahead of the game and thrive in this competitive landscape. So, let’s cut to the chase!

Building Partnerships 

Collaboration has always been the cornerstone of business success, and the real estate industry is no exception. Building partnerships with other professionals in the industry, especially teaming with real estate services and management, can open up new avenues for growth and success. It can provide developers access to a wealth of knowledge and experienced teams, including brokers, property managers, and subcontracts, to achieve business goals faster and more efficiently.

Additionally, these strategic partnerships can provide developers with invaluable insights into market trends, consumer behavior, and best practices, giving them a competitive advantage.

Embracing Technology

Real estate developers who quickly adopt new technologies can gain a competitive advantage in today’s industry. After all, technologies like virtual reality and 3D printing have revolutionized the way real estate projects are designed and marketed.

To be more specific, virtual reality enables developers to create immersive experiences for potential buyers. Thereby helping them make informed purchase decisions. 3D printing is also used to create scaled-down models of buildings, providing developers with better visualization of their projects.

Beyond these benefits, technology can also streamline the development process, reducing time and costs while enabling developers to create sustainable buildings that appeal to a growing environmentally-conscious demographic.

Innovative Design

Finally, in a world where aesthetics and functionality are equally important, developers need to go beyond the traditional approaches and create unique and visually striking projects that capture the imagination of buyers.

Innovative design can take many forms, from eco-friendly and sustainable buildings to futuristic and cutting-edge architecture. It requires collaboration between developers, architects, and designers to create visually appealing and practical projects.

This way, developers can increase their property value, attract a wider range of buyers (including environmentally conscious ones), and establish themselves as leaders in the industry. Not to mention, with the right design, they can create projects that stand the test of time and leave a lasting impression on their buyers.

To Sum It All Up 

The market constantly evolves, and developers need to stay on top of the game by adapting to changing market conditions and exploring new horizons. So, they need to follow the proactive and innovative approach discussed in this article. By implementing these strategies, you can take your real estate development business to new heights and achieve success in the industry.

Navigating Company Car Shipping Costs: Tips For Fleet Management

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StrategyDriven Managing Your Business Article | Navigating Company Car Shipping Costs: Tips For Fleet Management

For companies that rely on a fleet of vehicles, managing car shipping costs can be a significant challenge. The cost of shipping company cars can quickly add up, especially if you’re not taking steps to minimize expenses. In this article, we’ll provide tips and insights on how to navigate company car shipping costs and optimize your fleet management. We’ll explore four topics, including understanding the different types of car shipping services, factors that affect car shipping costs, scheduling car shipments for maximum cost savings, and strategies for preventing damage during shipping.

Understanding The Different Types Of Car Shipping Services

Understanding the different types of car shipping services is essential to choosing the right one for your business. Open transport is the most common type of car shipping service and is typically the most cost-effective. In this method, the cars are transported on an open carrier and are exposed to the elements during transport. While this option is cheaper, it may not be suitable for high-value or classic cars that require greater protection. Additionally, open transport is ideal for businesses that need to transport several cars at once.

Enclosed transport, on the other hand, provides greater protection for your vehicles during transport. In this method, the cars are transported in a covered trailer that shields them from the elements. This option is more expensive but may be necessary for high-value or classic cars that require extra protection during transport. Enclosed transport is also ideal for businesses that need to transport their cars across longer distances.

Another option to consider is terminal-to-terminal shipping. This method involves dropping off your cars at a central location for shipping and then picking them up at a different location. While this option may require more coordination, it can be more cost-effective than door-to-door shipping. Additionally, terminal-to-terminal shipping may be more suitable for businesses that need to ship cars on a regular basis, as it can reduce transportation costs over time. Understanding the different types of car shipping services is crucial to making informed decisions about your car shipping needs and minimizing expenses.

Factors That Affect Car Shipping Costs

Several factors can impact car shipping costs, and it’s important to be aware of these when managing your fleet. The distance your cars need to travel is one of the primary factors that affect shipping costs. The longer the distance, the more expensive the shipping costs will be. Additionally, the size and weight of your vehicles can impact the cost of shipping. Larger and heavier vehicles require more expensive shipping methods, such as enclosed transport.

The shipping method you choose can also affect costs, with open transport typically being the most cost-effective option. However, if your cars require extra protection, enclosed transport may be necessary despite its higher cost.

Seasonality is another factor that can impact car shipping costs. During peak seasons such as holidays or summer months, there is increased demand for car shipping services, which can lead to higher costs. Businesses should plan ahead and schedule their car shipments during less busy times to avoid higher shipping rates.

The level of service provided by the shipping company can also impact costs. While it may be tempting to choose the cheapest shipping option, it’s important to choose a reputable and experienced shipping company to ensure the safe delivery of your vehicles.

According to Montway’s car shipping cost calculator, an available resource to help businesses budget their car shipping expenses,

“Various factors will impact the cost of your auto shipment. In order to get an idea of your final cost, we recommend requesting a quote from a carrier or broker.”

Here is a summary of factors that can affect your company car shipping costs:

  • Distance your cars need to travel
  • Size and weight of your vehicles
  • Shipping method chosen (e.g., open transport, enclosed transport)
  • Seasonality (e.g., peak vs. off-peak times)
  • Level of service provided by the shipping company


Scheduling Car Shipments For Maximum Cost Savings

Scheduling your car shipments in advance can help you take advantage of lower rates and avoid rush fees. By planning ahead, you can explore cost-saving options and choose the best carrier and shipping method for your needs. Additionally, businesses that ship cars on a regular basis may be able to negotiate lower rates with a shipping company. This can help reduce shipping costs over time and increase cost savings.

Consolidating multiple car shipments into one is another way to save money on transportation costs. By combining multiple cars into one shipment, businesses can take advantage of lower rates for larger shipments. This option is particularly beneficial for companies that need to ship cars on a regular basis, as it can reduce transportation costs over time.

Choosing the right carrier size can help you avoid unnecessary costs. If you’re only shipping a few cars, there’s no need to pay for a full-sized carrier. By carefully scheduling your car shipments and choosing the right carrier size, you can minimize expenses and maximize cost savings.

Scheduling car shipments in advance and consolidating multiple shipments into one can help businesses take advantage of lower rates and minimize transportation costs. By carefully planning your car shipments and negotiating with shipping companies, you can reduce your expenses and increase your cost savings.

Strategies For Preventing Damage During Shipping

Preventing damage during company car shipping is essential to minimizing expenses and ensuring the safe delivery of your vehicles. Properly maintaining your company cars can help prevent damage during shipping and avoid additional costs. Additionally, choosing a reputable and experienced shipping company can help reduce the risk of damage. Be sure to inspect your cars before and after shipping to document any existing damage and report any new damage immediately. Taking proactive measures to prevent damage during shipping can save you time, money, and headaches in the long run.

Navigating company car shipping costs requires careful planning, analysis, and management. By understanding the different types of car shipping services, factors that affect car shipping costs, scheduling car shipments for maximum cost savings, and strategies for preventing damage during shipping, you can optimize your fleet management and minimize expenses. With the right strategies and resources, you can successfully navigate the complexities of company car shipping and keep your business moving forward.

Essential Needs for a Virtual Office

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StrategyDriven Managing Your Business Article | Essential Needs for a Virtual OfficeThe global COVID-19 pandemic shut down many economies around the globe. It also shut down many businesses and other entities throughout the United States. Many turned to remote work to continue moving forward and providing goods and services for customers and clients.

As more people and more organizations integrate online and cloud services into their daily activities, the type of internet service makes a big difference in communications and productivity. So do the types of equipment and technologies that they use.

How Internet Service Affects Productivity

Running a virtual office requires an exceptionally reliable and fast broadband internet service. You should carefully choose your internet service to ensure it will support your demands. After all, a virtual office will have multiple users and devices constantly exchanging information, putting serious demands on your internet service.

Many virtual offices use fixed connections that provide internet services. Fixed connections support broadband internet that might use coaxial cable, fiber-optic cable, or a DSL connection. Virtual offices also could choose among common wireless options for internet service, including satellite, fixed wireless, and 5G.

Virtual Office Communications Are Essential for Success

You cannot have a virtual office and support remote workers and remote work locations without a comprehensive office communications system. You need a system that will enable virtual meetings between two or more participants and document exchanges that occur in real-time.

While all of that is going on, you still need a way to support more traditional phone calls as well as virtual communications. A system that integrates a variety of communications systems into one unit is a terrific asset for any virtual office.

For example, OnSIP offers a variety of services that are simple, scalable, and support virtual office communications. You can customize your communications and get work done anywhere that internet service is available. That means just about anywhere in the developed world.

Answering Service and Receptionist

You likely will have people calling the phone number for your business or other organization. Those people will not be your workers, because they will use virtual office communications. So you will need a professional answering service and receptionist to handle incoming calls and direct the respective callers to the correct people.

A live receptionist who is professional and pleasant is a terrific asset and makes a direct personal connection with potential customers, clients, and other callers. The receptionist will be the first person many people speak with when calling to learn more about the goods or services that your business or organization might provide them.


Virtual Timeclock and Payroll

A virtual office has two ways to pay workers for their efforts. You could accept invoices and pay them based on the agreed rates for their time or the types of work that they accomplished. The other option is a virtual time clock that enables workers to punch in and out like they would in person. The virtual time clock helps you to keep better track of when and how long individual workers are on the task.

You also will need to pay your workforce as agreed. A payroll service can accomplish the task and pay your workers via direct deposit or through a pay app. Many virtual offices choose services that combine time clocks and payroll services, which can offer their employees several ways to collect their pay.

Assess Your Virtual Office Needs and Choose Wisely

Your virtual office requires you to consider how you will create virtually the same type of work environment that you would have in a physical office. You want to foster timely communication and cooperation among your staff to continue producing the best possible work environment and productivity. Assessing your needs and choosing wisely to equip your virtual office will help support productivity and possibly reduce your operating costs.