4 Steps to Regain Control of Your Business’s Finances

When starting a small business, it's easy to get overwhelmed with numerous tasks demanding your attention. However, maintaining a solid financial plan from day one is crucial for the long-term health of your business. In this blog, we'll provide essential guidance on staying on top of your finances and ensuring your business thrives from the start.

1. Track All Transactions

Small businesses often fall victim to financial stresses due to overspending. If you want to feel complete control of your business, track each transaction. Only after documenting and condensing these transactions will you see which expenses are necessary for your business’ growth and which expenses you can eliminate. You’ll be able to track down the unhealthy spending habits and make the necessary adjustments.

2. Create a Budget

To succeed financially, you will need to calculate a budget. But more importantly, you need to follow through with it. When creating the budget, view it as creating a spending guide, a rule book if you will. Take into account future payroll cycles, taxes, and inventory purchases. Make sure your budget is realistic, only then will it be able to set you up for success. Don’t overcomplicate the process either. An Excel Sheet or Google Doc will work perfectly.

3.  Calculate Your Cash Flow

To efficiently assess your business’s health, you need to be tracking your cash flow. To calculate this, subtract the expenses from your income. Following and tracking this number will help guide you in planning for the coming months.

4. Evaluate Pricing

Now that you are tracking and documenting all transactions, periodically check your pricing strategy. You may find you need to adjust if your expenses are outweighing the income. For your business to continue with healthy longevity, you will need to prioritize affordability and profitability. These two factors alone will keep you afloat even if your business runs into a rocky period. Don’t be afraid to research your competitors and take into account their numbers - sometimes the difference of a few cents can psychologically make a customer view a product as a bargain.

Consider The Productive Co.

The Productive Co. is your intelligent hiring partner, pairing you with experienced, college-educated Virtual Assistants. Our experts can assist you with operational strategies, administration, marketing support, and more. Growing a start-up might seem intimidating, but with the right mindset and team, we can transform your vision into action.

Book a free, 30-minute consultation with our founder, Lindsay, to learn how The Productive Co. can help your business.