« back to Work Life

Small business tips: Advice for small business owners

Small business tips: advice for small business owners

October 25, 2013

Fickle customers. Tough-to-source materials. A tight job market. Today’s entrepreneurs face plenty of challenges. That’s all the more reason for small business owners to learn all they can about smart borrowing and planning for the future. In fact, savvy financial decision-making can make the difference between success and failure. Here are 4 time-tested pieces of advice that can help you get through the tough times and ensure your business’s longevity. 

Borrow wisely. 

There’s more than one way to borrow money if you’re running a budding business. Credit cards, lines of credit and small business loans are only a handful of options available today. Deciding which one is right for you entails developing a cash flow analysis to determine your needs, assessing your ability to repay and understanding the factors a lending institution will use to qualify you for a loan or line of credit.

Revisit your business plan.

Your customers rave about your products and you’re known for your top-notch customer service. Yet your business is still losing money. If that’s the case, it might be time to revisit your business plan. How has the market changed? Are you paying too much in interest charges? Or perhaps your cash flow projections are no longer accurate. Whatever the case, reviewing your business plan can help you get back on course.

Manage your overhead carefully.

A swanky office might impress your clients, but it can also put a dent in your finances. Investing in great talent and product innovation rather than leather couches is likely to give you a greater return on value.

Keep learning. 

Two heads are always better than one, especially when it comes to running a small business. Expert advice from a bank manager, accountant, bookkeeper or financial planner can help guide the decisions you make regarding investing, borrowing and hiring. In fact, joining an industry association is an excellent way to meet a mentor – someone who can share best practices and life lessons on your road to success.