The financial side of the business is always going to be the one you need to have a hold on the most. Not only does it dictate the success of the business, but it is the one thing you need to keep on top of on a daily basis in order to keep everything afloat. As an entrepreneur, this can seem overwhelming. When you’re trying to focus on doing your work, it can seem like a lot to know you have to take on everything else. But when you get it right, it doesn’t have to feel heavy at all. Therefore, we’re going to take a look at the 9 strategies to focus on when you want to run the financial side like a boss.
By Team Savant
Image: Farhat Altaf
When it comes to being in business, there’s always such a wide range of tasks you need to take on. In the beginning, you aren’t always aware of what’s about to come your way. Even when you plan things out meticulously, it’s often impossible for you to prepare for the life of an entrepreneur until you’re in it. So, as much as your business plan is important in the early stages, it’s essential for you to realise that you are likely to stray from it as time goes by. Finding your feet as you go is only natural. And as this happens, you’ll discover what works best for you. From marketing to communicating with suppliers to running your operations, you get to figure it all out. But at the same time, there will always be areas of the business that are more important than others – and it’s often these that you need to focus on the most. This is very much the case when it comes to finance.
1. Set Goals
First of all, you’re also going to want to make sure that you set goals for the company. Goal setting allows you to focus on the things you want to achieve. Most of the time, this is going to involve making sales, driving revenue, and boosting profit. So knowing what you’re working toward here is always a positive first step.
2. Project Your Finances
As part of your goal-setting and business planning process, you may have made some financial projections. This is also a key part of your financial year. When you estimate sales, it gives you something to both aim for and work from. That way, you will be able to successfully plan ahead in business.
3. Get Funding
In some cases, you may also want to look into funding. When it comes to getting your business to where you want it to be, you may need some investment. So here, looking into angel investors and VCs could be an important step for you. Or, it might just be that you want to look into a smaller traditional business loan in the beginning.
4. Use Key Software
When it comes to the daily management of your business's financials, you need the right financial software to support you. Without it, you won’t always know where you’re at. By bringing in smart tools that track everything for you, you’ll be able to make your bookkeeping and accounting feel so much easier.
5. Have a Topline View
Another thing that can really help you is the ability to have a topline view of the business finances at all times. Sometimes, logging into your business bank can help. However, you may also want to look into the tools and software that will allow you to see sales, revenue, and other key metrics on a daily basis too.
6. Protect Your Profit
In business, profit is always the most important thing. While this can sound greedy, it’s not. Without making a profit, the business won’t always be viable. So if there’s one thing that you always want to ensure if looking healthy, it’s your profit margin.
7. Keep Costs Down
With that in mind, you always need to make sure that you’re keeping your costs down as much as possible. While this certainly doesn’t mean that you should penny pinch or cut back on things unnecessarily, you will want to be smart. You will want to audit your overheads regularly and shop around for the right suppliers too. Looking for good prices on everything from shipping materials to the best EV tariff will help you to do this. That way, you will be able to maximize your profits.
8. Invest in the Business
As much as it’s important to always make sure there’s profit for you in the business and that your overheads are under control, you will still want to reinvest your earnings back into the business. Deciding how much to reinvest is entirely up to you. However, if you know you have goals to reach, you need to make sure that you’re allocating the funds to support that. You will find that this certainly goes on to pay off in the future.
9. Focus on Growth
Lastly, when you know that you want to really nail the financial side of business, you need to make sure that the business is growing. Yes, revenue growth is always going to be a huge part of what you’re working on – but it still needs to be profitable. So, as you’re looking to grow the business, make sure that it’s sustainable and creates the right kind of impact. This is how you know your hard work will always pay off.
Final Thoughts: Nailing Your Financials for Future Success
Ultimately, when you know what you’re looking to achieve and you want to be able to drive your business in the right direction, holding down your finances can make a huge difference. As you start to project your sales and focus on growth, bring in the right metrics and software, and have a topline view, it’s easier than ever for you to know where you are at all times. The overall goal here is to have everything running for you behind the scenes so that you can focus on doing your thing and reaching your goals.