You had an eureka moment, created your business plan, had some money stashed away to fund your dream, took the plunge and started your own small business.

Fantastic, however you discovered there is no time to stay on top of the accounts, managing finances and plan for that rainy day when sales take a dive. You’re just too busy operating the business and struggling to manage your staff if you’re already grown to that level.

Well, let’s just take a breather and look at the health of your business finances. This is a crucial evaluation process of your business to assess where you started and where you ultimately want to go with it. The current financial health and ongoing working capital is the key to its long-term survival. So let’s start here;

Accounts Payable. The lack of cash flow can slow a business down if suppliers are holding orders while they wait for your payment. Overdue invoices can collect a default and tarnish your credit file affecting your future ability to borrow funds for expansion. Look for cash flow solutions that allow daily or weekly repayments to better manage your bank account.

Accounts Receivable. Who owes you money and take action to collect it. Taking the time with a simple phone call, or reminder processes can save you thousands. Offer discounts for early payment.

Credit. The majority of business owners access credit to operate the business. Applying for credit can be a challenge especially for new businesses. Regularly meet your credit commitments to maintain a healthy credit history and build a solid foundation for the future when larger financing is required for expansion. Make the effort to research alternative funding sources such as unsecured business loans and merchant cash advances which have a higher approval rate with minimum requirements compared to the banks.

Processes. Learn how to run a LEAN business. Take a look at each function of the business and look to automate each process or outsource if possible. There are hundreds of innovative software resources and new technologies available to keep the business running LEAN and maintain more of your profits.

Expansion. Strategically analyse your best channel for growth and its immediate impact on your finances. How much can the business afford to borrow and comfortably meet its obligations while implementing its growth strategy? How do you safeguard your assets while financing your growth?

Explore all alternative debt and equity options to minimise the risk. Look at government grants, private investment partners and other short-term small business loans to fund your expansion.

Visit Accrutus Capital for fast flexible funding or call 02 9006 1327.


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