As we enter the new year, it is the ideal time to review your business’ financial practices and consider any changes which could benefit your business. The following are some great resolutions for small businesses which could help your business stay out of the red this year.
1. Make more time for yourself
For any small business or startup, managing time effectively is essential. As the owner of a small business, it can be hard to focus on growing the business, especially when so much time is spent involved with its day-to-day running. Take a look at your workload and consider outsourcing or passing tasks to an employee. There are many outside companies which will be able to assist with everything from IT to marketing. Although it can be difficult to let go of the reins, your ability to focus on other areas will have financial benefits in the long run.
2. Monitor cash flow
One of the most common issues faced by small businesses is poor cash flow management. However, it is possible to manage your cash flow and avoid unbalanced books by spending a little bit of time monitoring accounts. Aim to always be aware of any potential issues, as you will be able to resolve these before they impact the business. By monitoring your cash flow and planning ahead, you will be able to ensure funds are available to cover payments.
3. Consider leasing rather than purchasing equipment
If your business needs to invest in new equipment, the cost of paying upfront could significantly impact your businesses finances. Instead, consider a finance lease agreement which will allow you to make small monthly payments instead of a large upfront payment. Another benefit is the ability to include lease payments for equipment on balance sheets as a deductible business expense. In many situations, this will help to offset the additional finance costs.
4. Attract external investment
As a small business or startup, you may be eligible for investment from a variety of external sources. An example is the Seed Enterprise Investment Scheme (SEIS), which aims to fast track business growth, by offering various forms of tax relief.
Resolutions for small businesses
Established since 1989, Tower Leasing Ltd is a funder with the support of brokerage facilities which enable companies across the UK to acquire much needed capital equipment through leasing. We create the opportunity for businesses to manage their cash flow whilst being able to secure the latest assets and technology which enables our customers to stay competitive within the market. Our services also provide the capability to deliver additional funding to support your business growth with our wide range of finance solutions.
Learn how we can help with cash flow by reading a case study about our client Regency Pizza.
Find out more about our business finance solutions.