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Now let’s get to how you can make more money in your business
If you ask any finance professional the question, why don't small businesses grow? They'll probably tell you it's due to their lack of finances.
Many businesses have a good enough cash flow for steady growth, but are still not profitable. And some other small businesses have such bad cash flow that they are on the verge of bankruptcy; time don do make them pack up!
Yes, there are many strategies out that claim to help you grow your small business's finances in a short period, but let's be honest; plenty are okpoto meaw meaw. Beyond loans and grants, here are 4 growth strategies to help you increase your business's finances.
Separate Your Business Accounts From Your Personal Accounts
The business owner is very different from your every day. So is the money your business makes for your business. From the moment you start your business, set aside a separate account for it; this is a way for you to track growth and cash flow in your business.
In addition, it can also serve as proof of business if you ever find yourself seeking a loan. For example, suppose a bank statement is requested to project your cash flow and determine your capability to payback.
Tip: Open a corporate bank account. It's the age where technology has made everything more accessible; it's so easy to open an online bank account even without even stepping foot into an actual bank.
Explore investment opportunities to double your money
Are you aware of the 50-30-20 money rule? This is a popular rule by US law professor Elizabeth Warren, in her bestselling book "All Your Worth: The Ultimate Lifetime Money Plan,"
In this book, she itemizes the following:
- 50% to needs
- 30% to wants
- 20% to savings
50% of your business's profits should go back into your business's operations. Such as paying for equipment, electricity bills, data costs, etc., 30% should go to paying yourself and your staff if you have any. Then the 20% should be saved but should not be left idle.
Come on; it's money; you multiply money with money. You have many investment options to explore, from real estate to cryptocurrencies, NFTs, etc.
It's up to you to research your preference; keep in mind that if you multiply your money, the higher your chances are to upscale.
Business advice: Preparing a business budget and sticking to it would allow you to easily emulate the above money rule as you aim to upscale and multiply your business earnings.
Trade by barter with influencer marketing
It's the age of connecting with Instagram influencers and social media marketing, so leverage it. You offer them something (your product or service). They offer you promotions via their social media channels to reach your potential customers or target audience.
And no, we are not saying you should reach out to high-end influencers that you know would charge you a ton of money; give micro-influencers a try.
For example, if you sell clothes, you could reach out to fashion bloggers; send them some of your products, and ask that they tag you when they use them or request that they create video content around your product to share with their followers.
You should also develop creative ways to use their platforms to reach your target audience.
Most importantly, you have to ensure that you offer them value for what you request from them. In addition, you would have to be accountable to them since they are willing to work with you.
Find other financial incentives besides loans
A way to grow your business' finances is to look for financial support that would not stress you.
There are hundreds of business grants and empowerment schemes for small businesses like yours. So no matter how enticing, taking a loan is, explore other options first for the sake of your business's needs. There are many financial support sources, such as friends and family, etc.
how can Kippa help you? It is a product that helps your business realize tremendous growth and sound financial management. Especially if you are trying to grow your finances, you need a profit and loss management app. Don't look too far; the Kippa cash book and financial reports, respectively, can below you track every penny your business sends or makes. The invoicing feature can help with monitoring sales everything your company sells. The debt feature could also help your business collect any money that your business is owed 3X faster.