Building a business from scratch is no small task. And when it comes to running the financial side of a startup, it’s not always easy to know where to start. Whether you’re just starting your business or simply looking for better ways to manage your money, here are four great financial habits to emulate.
Manage cash flow
Every company, whether big or small, needs to have a steady cash flow management system. Start by establishing a budget and keep track of cash flow on a weekly, monthly, or quarterly basis. Many small business owners use a business credit card to pay vendors and better manage their spending.
Limit fixed expenses
Especially in the early days of starting your business, it’s wise to limit your fixed expenses. For example, there’s no reason to rent a large office space or spend money on special amenities right away. Limiting your fixed expenses early on will help you focus on generating revenue and allow for better cash flow.
Build an emergency fund
One of the most important things you can do to ensure the long-term success of your business is establishing an emergency fund. Strive to build an emergency fund of at least $1,000 to serve as a safety net for unexpected expenses. Make a goal to save a certain amount each month, and keep your emergency savings in a separate account to resist the temptation to spend it.
Take steps to reduce overhead
Overhead expenses are the costs associated with the day-to-day operations of your business and may include office supplies, rental space, equipment and utilities, insurance, and permanent staff. Successful entrepreneurs are always looking for ways to reduce overhead costs while simultaneously boosting productivity. One way business owners are reducing overhead expenses is by utilizing local outsourcing services. Outsourcing essential daily tasks such as bookkeeping, marketing, assembly, packaging, and shipping can help save time and reduce the overhead expenses associated with hiring more staff, renting a larger workspace, or purchasing equipment.
Are you ready to start reducing overhead costs and improving efficiency in operations? Put Goodwill to work for your business! At Ohio Valley Goodwill Industries, we have decades of experience helping business owners in Cincinnati, Northern Kentucky, and Southeast Indiana achieve their goals and reduce overhead. If you’re looking for quality outsourcing services for your startup or established business including assembly, packaging, shipping, and fulfillment, look no further than Ohio Valley Goodwill’s Industrial Services Division. We’d love to help you find the outsourcing solution to fit your business needs and goals. Contact us today to learn more and receive a free tour of our facilities.