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5 Common Finance Mistakes to Avoid for Small Businesses

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StrategyDriven Managing Your Finances Article |finance mistakes|5 Common Finance Mistakes to Avoid for Small BusinessesDid you know 82% of businesses fail due to cash flow and cash management problems?

This can be due to a lack of planning or trying to DIY your finances and making business finance mistakes you cannot overcome. While this is a staggering statistic that may leave you feeling overwhelmed, you can use it to make better financial choices and give your business a fighting chance at success.

If you are a small business owner who wants your business to succeed, here are several financial mistakes you should avoid making.

1. Not Having a Financial Plan

When starting a business, one of the most important things you can do is create a financial plan. This is the part of your business plan details the financial side of your business. Creating a financial plan will help you know if your business idea is viable or not so starting with this plan is essential.

2. Not Following a Budget

If you don’t have a budget or are not following a budget, you can spend more than your business brings in and experience cash flow problems.

Because there are many common business expenses, creating a business budget is as simple as detailing your income sources and determining your fixed, variable, and one-time expenses. Following a budget is the easiest way to take control of your business finances.

3. Getting Into Business Debt With No Repayment Plan

For many small businesses, having debt is necessary to start and run your business. The problem comes when you have several forms of debt with no viable way to repay it. Never take on more debt than is necessary and always have a reasonable, short-term repayment plan.
If you are overwhelmed with debt, search “how does debt relief work” to learn about debt consolidation.

4. Ignoring Your Business Credit Score

Like your personal credit score, your business credit score is an instant indicator to lenders and investors of how well you manage your business finances. Having a good business credit score can be the difference between receiving funding to grow your business and being denied.

It’s important to maintain a great business credit score so you can have another option for funding your business.

5. Combining Your Personal and Business Finances

A common mistake many small business owners make is combining their business and personal accounts. This is dangerous because a misstep with your personal finances can negatively affect your business reputation and vice versa. It can also make your business and personal taxes difficult to figure out.

Separate your business and personal finances from the start to avoid the headaches that are sure to come if you don’t.

Avoid These Finance Mistakes to Have Business Success

These are the common business finance mistakes that result in failure.

Start with a plan and a budget to manage your business finances. Avoid unnecessary debt as this will put your small business in danger of failing.

Don’t ignore your tax planning, keep your personal and business finances separate, and make sure to maintain a good business credit score. Create an emergency saving account so you can stay afloat during difficult times.

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Starting a New Business is Easier Than Ever, But it Still Needs Work

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StrategyDriven Starting Your Business Article |Starting a New Business|Starting a New Business is Easier Than Ever, But it Still Needs WorkIf you are serious about wanting to launch a brand new business, there are a lot of things you can do to help you achieve this. Try to do as much as possible to help you improve and assess the different elements of the business, and try to look at the best ways of achieving this. There are so many factors that play a role in helping with this, and it is something you need to work on as much as possible.

Try to come up with ideas that are going to allow you to launch a business with the highest possible level of success. This is something that plays a massive part in helping you improve the process and launch a company that is going to hit the ground running. These are some of the key things to consider and work on when you want to launch your first business and make sure it is successful.

Create a Strong Business Plan

Creating a strong business plan is one of the most important elements of starting a brand new business. You need a sense of direction and a map for where your business is going to go, and a business plan is one of the best ways of being able to achieve this. You have to do as much as possible to make sure you have the strongest and most detailed business plan possible, as this is something that will help to give you a business blueprint.

Start Small and Look to Expand

You are going to have to do as much as you possibly can to try to develop a strong business when you first launch. This means you should look at how you can start small and work on making the business better and building up toward growing the brand. This is something you are going to need to work on as much as possible. Expanding and growing the business as much as possible is so important, and this is something you have to focus on right now.

Make Sure You Have Great IT Support

As a business, it is important for you to ensure you work on the best possible way of supporting yourself as a company. One of the best ways of being able to achieve this is to hire the right IT support company to help take charge of your company when it’s on a digital platform. You should visit this website for more information about how you can find the perfect IT support to help look after your business as much as possible.

Stand Out from the Competition

Something else you need to make sure you get right as a new business is to stand out from the competition. This is something you need to work on as soon as you can, and there are a lot of things you might consider doing if you are serious about achieving the right success and having this success over your rivals.

These are some of the key things you are going to need to look for and consider when it comes to improving the business and making the most of it. You are going to have to consider exactly what is involved when it comes time to launch a company in the right sort of way. If you can follow these ideas, there will be so much more you can accomplish as a new business owner.

4 Business Finance Strategies You Need to Know About

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StrategyDriven Managing Your Finances Article |Financial Strategy|4 Business Finance Strategies You Need to Know AboutAs well as focusing on improving sales and generating more profit, all businesses also need to understand how to manage their internal finances and stay on track. Any slip in your financial strategy could have a negative effect, which can harm your business in the long run.

Why Do You Need a Financial Strategy?

To pursue your goals as a business, you need to understand your finances and how your funding is going to allow you to accomplish those goals. Having financial strategies in place means you can better focus your money on the things which matter, namely, the development and growth of your business.

Here are four financial methods you can implement to help your business stay on track.

1. Consider Your Funding Options

If your main financial concern is gaining the required funding to get your business off the ground – whether this is a small business endeavor or an entrepreneurial mission – then you will need to consider your funding options wisely.

You should always look for a funding option that you know you can comfortably pay back, and which eliminates any extortionate extra costs. Businesses like Become.co stand ready to help those businesses who might be unsure about the funding options available to them and would like to explore the possibilities.

2. Control Your Expenses

Have a solid business idea, product or service does not necessarily mean that it will be a financial success. What matters more in business – especially during the growth period – is always staying on top of your business expenses to ensure that your business does not fail very quickly if it does not make a high amount of sales in the first instance.

You should implement a firm strategy which allows your business to work at its most productive, for minimum cost. Understanding your set outgoings and look at ways in which you can reduce any expenses if your business sales are at a low.

3. Manage Any Business Risk

This doesn’t just mean financial risk; it means any variability within your business, which could compromise its ability to make a solid profit. This could include:

  • A new business competitor
  • Change in the demands of consumers
  • Environmental factors, such as bad weather, meaning deliveries cannot be made, and therefore orders cannot be processed
  • Technological issues
  • Change in technology
  • Change in business regulations

Only by understanding the risks posed to your business can you work to set up safeguards against them.

4. Don’t Put All Your Financial Eggs into One Basket

You don’t want to have pooled all your assets and resources into one area, only to have that area fail. By spreading out your investments and resources, you are securing less vulnerability if one of these areas should go wrong. When making investments within your business, think about a broad range of unrelated options that let you spread out your finances and assets into many different areas for more financial security.

3 Important Tips for How to Start a Manufacturing Business

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StrategyDriven Starting Your Business Article |start a manufacturing business|3 Important Tips for How to Start a Manufacturing BusinessWith the growth of online side hustles and Digital Age focused businesses, most people don’t consider all the benefits that a manufacturing startup offers. Even though an online business provides you with the flexibility to deal with digital products, there are some drawbacks.

For example, several online businesses require physical products to ship to their customers. This means the rise of today’s online businesses heralds the need for fair suppliers and manufacturers. This is your chance to start a manufacturing business.

Now the question is – how?

Before jumping in, there are a few things to consider. Keep reading to learn what these things are.

1. Create a Quality Business Plan

A new manufacturing company can be extremely lucrative. However, before the profits begin rolling in, you have to create a business plan.

The business plan you create is where you are going to outline the methods for your company moving forward. This is where you can figure out things like material sources, product projections, ethical standpoint, and the marketing strategies you will use.

This is also when you will outline how you will conduct business with other companies, along with how you will treat your clients and employees through your business processes.

Remember, the manufacturing industry is changing, and democratizing knowledge is a must to achieve success.

2. Consider Location

As you are planning to begin your manufacturing company, location is an important factor. Figure out where you are going to set up your manufacturing operations. You also need to decide where you are going to sell your products.

In the beginning, you may be able to operate from home. However, as your business grows, you will need specialized equipment and a bigger commercial space.

Thinking about where you are going to sell your products can be found out by researching various marketing channels.

3. Take Baby Steps

Opening your own manufacturing unit is something that takes a lot of money and time. You can’t afford to make mistakes.

It’s best to avoid risks during the initial stages by renting or leasing space and equipment rather than buying it upfront. Depend more on low-investment tools and manual labor for the initial months because your product is likely going to go under several last-minute changes during that time.

A smart mantra to follow when opening a manufacturing company is to start at a crawl.

Are You Ready to Start a Manufacturing Business?

If you want to start a manufacturing business, there are more than a few factors to consider. If you want the best chance of success, be sure to keep the tips and information here in mind.

In the long run, when you have the right strategies and tips, you will be much more likely to find success. If you are searching for additional information about business practices and more, be sure to check out some of our other blogs. We post regularly to keep you informed.

How to Start a Distillery: The Step-By-Step Guide

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StrategyDriven Starting Your Business Article |how to start a distillery |How to Start a Distillery: The Step-By-Step GuideEntrepreneurs come in many different shapes, sizes, and interests. They all have different passions that they’re looking to pursue.

That’s good! It’s what makes the corporate world go round. If they won’t provide a certain service to customers, who will?

One of the business ventures you might be interested in is starting a distillery. It gives you a company that you can pour (pun intended) your heart and soul into to receive a substantial profit.

There are however certain guidelines that every potential distiller should follow. Here are some pointers on how to start a distillery that can grow for years to come.

1. Create a Business Plan

No successful business ever started without a business plan in place. Granted, some of them may not be super elaborate, but you don’t want to follow that trend. The more detail, the better!

There are certain factors you’ll want to perform heavy research on for your business plans. These are things such as the costs for your startup, production process, when can you break even, the name of your business, and what you’ll distill to name a few.

What does your target customer look like? How much will you charge them for your liquor? What return do you expect to see?

Assuming you don’t have thousands of dollars laying around, you’ll want to seek a funding group to help with your startup. Having an organized and strategic plan in place goes a long way with them.

2. Establish an Entity and Register for Taxes

Now that you’re a legitimate business, you need to get everything in place with federal business requirements.
That means forming a legal entity for your company and registering for your state and federal taxes.

For forming a legal entity, you can choose from such structures as a Limited Liability Company (LLC) or a Doing Business As (DBA). Either will help protect your personal assets if the business gets sued.

As you’re registering for your state and federal taxes, be sure to apply for and obtain an Employer Identification Number (EIN).

3. Start Considering Your Equipment

It’s never too early to start planning and budgeting for the equipment you’ll need to properly distill your liquor.
Such equipment includes water supply, a mill, cooker, still, transfer hoses, receiving tank, and fermenters. All of that can add up quickly and should be purchased in waves leading up to opening up your distillery.

However, the sooner you save up for it and purchase it, the sooner that you can start with your distilling process. Thus, the sooner you can start making a profit off of your liquor!

4. Open a Business Account with the Bank

One mistake that many people make when starting a business is not separating their personal bank account from their business bank account.

Not doing so can risk all of your personal funding and assets that you’ve accrued. Be sure to set up a business account to protect them.

Heaven forbid if you were to get sued, and you didn’t have a business account, things such as your house, checking account, jewelry, car, or retirement savings could be at risk.

While you’re doing that, be sure to request a business credit card so that you can control the expenses and pay them off in one single place.

5. Attend Distilling Workshops

While you or your business partner might be exceptionally knowledgeable on distilling, there will always be more to learn. It’s good for you and your business to educate yourself.

Because of that, you should attend a distilling workshop or two to see what you can learn about the process.
This will also help you build a network of knowledgeable distillers with years of experience under their belt.

They’ll be more than happy to point you in the right direction and help out in any way that they can. Who knows? Maybe your distillery will hire them one day!

While the classes might be a bit pricey, they’re well worth the investment. You’ll receive new ways of thinking that you can reiterate to all of your business partners.

6. Get All Permits/Licenses Taken Care of

Your distillery isn’t a legal business until you’ve properly acquired all licenses and permits required by your state. Be sure to find out what your specific state requires and seek them out.

The two mainstays among all states are a proper liquor license and a certificate of occupancy for your business.
Be sure to look up what role each of them plays in your distillery and how you can correctly go about obtaining them.

7. Invest in Insurance for Your Distillery

There are two types of coverage that you’ll need in your distillery insurance: property coverage and liability coverage.

Property coverage is exactly what the name would imply. It protects all incidents that might happen with the property your distillery conducts its business on.

Such things as fires, faulty parts, or even flooding can be a major catastrophe that results in your company going out of business. You may lose your entire distillery before it even gets up and running.

Property coverage is made to protect things such as the products you’ve made, the machinery you use, and the building that you use.

Liability coverage, on the other hand, protects you from the actions of their users. For example, if someone gets drunk on your premises and then is involved in a drunk driving accident, you’ll be protected.

As you can see, distillery insurance is vitally important. Learn more here for more details on this subject.

How to Start a Distillery: Set It up for Success!

As you can see, there’s a lot of factors on how to start a distillery initially, but they’re all vitally important.
Once you get them all out of the way, you’ll be reeling in a profit in no time!

Be sure to read our other articles that pertain to both this topic and other topics just like it.

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