Small business owners are struggling to manage their finances. How can you avoid the same fate?

Before you can know your numbers, you need to have your data organized. Can't stress enough for a new business to implement technology to manage your accounting such as Quickbooks and hire a Bookkeeping Service to organize your income vs expenses and perform a monthly audit within Quickbooks. Minimal costs and huge time saver for any size business.

To avoid financial struggles as a small business owner, take proactive steps. Create a clear budget and monitor cash flow closely. Keep personal and business finances separate and stay on top of invoicing and payments. Plan for taxes and seek professional guidance when needed. Invest in financial education, diversify revenue streams, and establish an emergency fund. These measures can help you navigate challenges and ensure your business's long-term success.

Develop a strategic cash flow management plan to ensure optimal utilization of available funds and maintain financial stability. Forecast your cash inflows and outflows with accuracy, considering various scenarios and potential fluctuations in revenue and expenses.

Same thing goes for knowing your numbers when it comes to inbound service… How many inbound calls/emails is your team receiving each day? What are the majority of those inbounds pertaining to? If you offer something for client self-service, does it provide daily metrics on activity? Throwing more people at the problem isn’t always the solution when you know your numbers.

Además de conocer tus números necesitas comprender lo que estos números significan para la salud financiera de tu empresa y cómo puedes utilizar esta información para tomar decisiones más informadas.

Incorporate feedback from key stakeholders, monitor performance metrics in real-time, and adjust projections as needed to align with emerging opportunities or challenges. This iterative process enables you to maintain financial agility.

Para disponer de información relevante a la hora de hacer un presupuesto, es necesario conocer variables claves del mercado, que se relacionan con el negocio. Es por esto que un estudio de mercado es muy importante en especial el análisis Pestel( político, económico, social, tecnológico, ecológico, legal), ya entrega una comprensión más profunda de los factores externos que podrían impactar su negocio.Sin embargo estos estudios son caros y las peque?as empresas tienen recursos limitados y ajustados, en ese caso pueden aprovechar herramientas digitales y enfoques de investigación de mercado de bajo costo, como análisis de redes sociales, la recopilación de datos secundarios disponibles públicamente, acercarse a las universidades,entre otros.

También hay que considerar la optimización del inventario. Esto incluye mantener un equilibrio para evitar excesos que conlleven a costos innecesarios y a escasez ya que puede resultar en una pérdida de ventas. Usar técnicas de pronóstico para ajustar los niveles de inventario evitan la obsolescencia y el desperdicio, optimizando así los recursos y reduciendo a su vez los gastos innecesarios.

Running out of cash is one of the most common reasons for small business failure. Often this could be prevented by regular review of the finances, at least monthly. Hitting zero should not be a surprise - the warning signs will have been there for long enough to take evasive action. When the cash flow forecasts are looking poor, drop all else and get out there and sell, sell, sell... Don't get confused with profit and loss accounts (sales made, but maybe not paid) versus cash flow (how much money you actually have in the bank). Shorten your payment terms, and chase outstanding and overdue invoices diligently. Balance payments out to suppliers against receivables to ensure you're not leaving yourself critically exposed.

Es fundamental que se monitoree el flujo de caja. Un seguimiento continuo y detallado de las entradas y salidas de efectivo de tu negocio sirve para identificar problemas, tendencias, posibles déficits y tomar decisiones informadas.

El cumplimiento de las obligaciones fiscales refleja la responsabilidad corporativa y el compromiso de la empresa con las normativas legales y su contribución a la sociedad. Este acto no solo evita consecuencias legales y financieras adversas, sino que también fortalece la reputación de la empresa y su relación con la comunidad. Los incentivos gubernamentales, como subsidios o beneficios por inversiones, son formas de retribuir a las empresas que contribuyen positivamente, cerrando un ciclo de beneficio mutuo entre el negocio y la sociedad.

Streamline and automate processes: Processes can often be the cause of wasted resources and time for small businesses, especially because businesses owners don’t know how to quantify their real impact on their the finances. Ineffective process not only results in higher labor costs but also on missed opportunities as business owners and staff get tied up on redundant or labor intensive tasks rather and on those that can increase revenue and profits. Start by identifying where waste is happening. Then get your team involved to evaluate and implement changes that can reduce it or eliminate it.

You can find training for business finance from local organizations. - Chambers of Commerce - Small Business Development Centers (SBDC) - Minority Business Development Agency (MBDA) Business Centers Most chambers charge a membership fee to access services. SBDCs and MBDA Business Centers tend to offer services at no cost.

Finances are daunting. Very few entrepreneurs gravitate toward it. Good news: you don't need to be an expert. But you MUST be COMPETENT. There's a level of understanding you need to achieve. You don't need to get a degree in accounting or finance, but you need to know enough to ask good questions of the people you're working with. Tons of great books, classes, and seminars out there. And the best finance partners will also be happy to educate you while you work together. "Simple Numbers Straight Talk Big Profits" by Greg Crabtree is a fantastic read to get your mind working the right way about finance if you don't know where to start.