In the post-pandemic economy, small businesses are under a great amount of pressure.
Back in the peak of the pandemic, CNBC reported that 23% of small and medium-size businesses had to close (some on a permanent basis). Naturally, almost 2 years later, these businesses are still trying to get back on track!
Balancing your small business finances in 2022 is going to be difficult, especially if you’re a new start-up. However, despite all of this, there’s no need to panic. Luckily, this article has gathered together a selection of top tips that are specifically designed for small business owners looking to.
Tip Number 1: Use a Business Line of Credit or Business Credit Card
In these times, it’s essential that your small business uses either a business line of credit or a business credit card – one or the other!
If you’re running up business costs on a personal credit or debit card, this is never a good idea. In the long run, it will lead to all sorts of problems, especially when it comes to balancing the books and calculating taxes.
So, before anything else, you need to learn about a business line of credit vs business credit card. Both come with pros and cons, which is why you need to factor in your business’s individual needs before making a decision.
For example, business lines of credit usually offer higher credit limits than business credit cards. However, business credit cards usually offer interest-free days and rewards, which lines of credit don’t!
You don’t have to rush your decision, but it’s recommended you choose one of the options sooner rather than later, as it will make life so much easier for your small business finances moving forward.
Tip Number 2: Cut Down on Traditional Marketing Expenses
Over the past decade, traditional marketing methods – such as flyers and billboard ads – have become less relevant. Instead, digital marketing methods have largely replaced them.
Therefore, if you’re running up huge bills for radio ads, magazine spots, and much more, it’s recommended you cut down on them. By doing this, you can save lots of money whilst switching to more modern marketing alternatives, like social media and Google.
With social media, a good place to start is generally Facebook. Modern-day customers go to Facebook to find out information about businesses, from their opening times to store locations.
In addition to this, you should also make business accounts on Twitter and Instagram. On these platforms, you can generally be more creative and free flowing with your marketing content, from posting funny customer-related memes to engaging with tweets you’ve been tagged in.
Tip Number 3: Don’t Be Scared of Loans
When it comes to loans, many small business owners are scared of them. Interestingly, though, loans have become more common over recent times. This is largely due to the dreaded COVID-19 pandemic, which led to 47% of small business owners have to take on debt in order to stay afloat! Crazy, right?
Since then, thousands of start-ups and other small businesses have requested loans in order to gain a positive boost. After all, loans are designed to provide long-term stability for businesses, as they can be used for marketing, sales, running costs, rent, and much more.
To get a loan, it’s worth considering a government grant. Alternatively, you can go to your bank and see what offers they can put on the table for you.
Tip Number 4: Use an Invoicing App
As a small business, you likely have to bill a significant number of customers and clients each month. However, if you’re doing this the traditional way, it’s time to switch things up! Nowadays, most modern businesses are using invoicing apps, which are specifically designed to automate invoices and remind customers to make their due payments. Essentially, it’s a smart way to cut down on the stress and hassle of having to bill individual customers. Whenever there’s a problem or unpaid invoice, you’ll be notified!
Top Number 5: Use Free Cloud Apps
Many small businesses make the mistake of investing in overpriced cloud apps. This is especially silly when you consider the sheer volume of free cloud apps (or extremely cheap cloud apps) that are available for businesses to use.
Popular examples include Google Drive, Microsoft OneDrive, Microsoft Teams, and Dropbox. These apps can be used by you and your team for file sharing, video conferencing, and lots of other important things. In today’s business world, this is something you can’t put a price on!