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Written by Ed Carter from AbleFutures
Managing a business requires vigilance and attention to details, which can be difficult for new entrepreneurs. If you’re struggling with day-to-day business management, you’re not alone: new business owners face a steep learning curve that requires an open mind and willingness to try new things. To be successful as an entrepreneur, use this as a guide for learning how to manage finances and grow your company.
Daily Business Management
For new business owners, it may be tricky to understand all aspects of business management until the task is urgently required. Many entrepreneurs learn as they grow, figuring out their own systems for getting paid and managing finances. While this might work for some, it’s much better to determine a routine system for keeping your finances under control.
Invoicing and Tracking Sales
While it might seem easier or cheaper to create your own system for invoicing and managing your sales, it’s much wiser and more sustainable to use an established billing and invoicing software program. Creating invoices, sending them to customers, and chasing up payment is hard enough in itself, so dedicate some time and money to invest in a program that will help you keep track of your sales.
Credit Card Management
If you own a small business, it’s important to accept credit cards to cater to more customers. While it may seem like a hassle to set up your payment systems to allow for credit card transactions, you’ll make it easier for people to use your services or buy your products.
To set up credit card payments, first, determine what method of payment is most appropriate for your business. If you plan to start small or don’t expect a large volume of customers, setting up a PayPal or Venmo account might be sufficient. However, companies that process many transactions per day would benefit from signing up with a merchant account.
Small business owners should also take precautions against chargebacks, which are disputed transactions. While chargebacks are supposed to protect consumers from unauthorized transactions, they can also harm small businesses. Both fraudulent activity and defective goods can cause small businesses to incur big losses, so it’s important to know how to protect your company.
One way to avoid confusion for customers is to stick to a DBA (“doing business as”) so customers can easily recognize credit card charges on statements. If they see an unfamiliar business name on their statement, they might be more tempted to dispute a charge. If accepting payments online, be sure to ask for as many verification details as possible to fend off fraud.
Securing Loans or Lines of Credit
When you’re growing your business, it’s important to think about ways to inject cash into your company. For example, if you need to hire an employee to expand your services, a business loan could help ensure you have the cash flow to afford it.
Do some research on resources designed to help small businesses:financial assistance is available for companies that are struggling during the COVID-19 pandemic, both from government and non-government entities. Lines of credit can also help you grow your business, especially if you need to purchase new equipment or move to a new location.
Adopt a Growth Mindset
Rather than focusing on the challenges of business ownership and management, think about ways to grow and build your business. While you currently might not have the same customer base as before the pandemic, consider how you might adapt your business to thrive within new pandemic guidelines and ordinances.
One option for shop owners is to open an online marketplace, or e-commerce website, to continue selling goods. Even if it requires hiring a web designer to revamp your website, you’ll allow for a broader range of customers and help your business thrive virtually.
Managing a new business takes time, and there will likely be some challenges along the way. Use this guide to keep your finances in order, protect your company from losing money, and to think about ways to grow and adapt despite the pandemic.
