All entrepreneurs want to know the secrets of business success, and many people will tell you about that “one secret” which will guarantee business growth, increased revenue, and longevity. The truth of the matter is that there is no single key for business success, but rather a confluence of different factors that entrepreneurs can steer to maximize profitability, while minimizing expenses and other headaches. To that end, we have compiled a list of the best tips for start-up business success.
1. Register Your Company Name
Apart from being able to claim deductibles and other tax breaks, registering your company’s name and getting a tax ID allows your business to get access to basic things, like lines of credit and other financing options.
2. Never Mix Personal And Business Expenses
So many start-up businesses feel the need to finance their operations by maxing out credit cards and draining personal savings, simply because they were not approved for bank loans. Using personal finances to fund a business not only muddles accounting, but it also causes a strain on cash flow for the business and personal accounts alike.
3. Automate Processes Wherever You Can
Whether you get accounting software, subscribe to cloud-based team collaboration to work from remote locations, or partner with a shipping company for pickups and deliveries – automating operations saves time, payroll, and cuts down on human error.
4. There Is No Such Thing As Big Competition
For business success, your reach should exceed your grasp. No order is too large, especially with purchase order financing. This advance in capital allows start-up businesses to fill large orders and collect equally large revenue, thereby leveling the playing field with the competition.
5. Hire Contractors
Whether you need labor, transportation, administrative, or IT positions filled, try using contractors. Contract employees do not cost nearly as much as full-time employees, and they save on taxes. Start-up businesses get the work done that they need, without having to deal with social security and unemployment taxes..
6. Stay On Top Of Receivables
Customer payments are the lifeblood of any business, and with the streamlined business model of a start-up, an outstanding customer balance can place a big strain on cash flow. Your business is not a charity, and you need to get paid for the services and goods you provide.
7. Bank Loans Aren’t The Only Source Of Financing
Many start-ups see bank loans as the sole source of funding to ensure a healthy launch and continued business success. The truth is, many start-up companies can find sources of financing within their own accounting departments. Open customer invoices can be monetized through factoring services for immediate working capital, instead of waiting on customer services. Generally speaking, accounts receivable financing is a fantastic way to get extra working capital without taking on debt or getting locked into a stringent payment schedule.
By following these basic tips, any start-up can stay on the road to business success without feeling strain on cash flow, and maximizing their profitability.