With the UK economy still struggling to shake off its post-recession blues, times are tougher than ever for small businesses. It has never been more imperative that small businesses employ creative financial tips and budget properly. According to a recent article on Yahoo, even giants like American Airlines, Suzuki and Avon could be set to go out of business next year. With behemoths like this struggling to survive, small businesses have no margin for error and here’s a guide to make sure your firm doesn’t make any:
Stick To Your Budget
Failing to stick to agreed budgets is the most common reason small businesses fail. Normally, this means firms don’t keep cash back for spending during slow periods or they simply don’t monitor how their outgoing expenses compare to their income. To succeed in business at any level, you’ve got to stick to your budget.
Don’t Ignore Your Bills
If you fail to pay your bills on time, then the damage it will do to your business credit will really hurt you in the long run. Not only will you not be able to buy supplies without paying in advance, you will also struggle to secure any kind of loans, except the really nasty kind where APR rates are in the 1000% rate. Keep your credit as squeaky clean as you can.
Keep An Eye On Your Employees
As well as making sure you employ the right people, you need to make sure you’re kept up-to-date on what’s going on in your firm when you’re away from your desk. There have been quite a few small firms who have suffered from employee theft and you need to make sure that you are only employing trustworthy and qualified people.
Know Your Target Market
Failing to do through research and establish who your target market is will kill your firm. You’ve got to find out who to advertise your goods to and how to efficiently and effectively market those products. If you don’t know who you’re selling to, then you have no chance of reaching any new customers.
Failing To Grasp Tax Rules
Failing to get a grip on the tax rules that affect your firm will cause you huge problems. To avoid any confusion and expensive mistakes, it’s probably best you hire an accountant. They will advise you on tax credits and stop you getting behind on your taxes, which will ruin your business quickly.
This article was written by Nixon Williams, the specialist contractor accountancy firm. For more information, visit our website.
