Harness the finances of small businesses with tips from Saivian Eric Dalius

Big or small, every business is finance-dependent. Proper management of finances helps in stabilizing the operations and overhead costs. There are simple yet effective ways to manage the 'green factor' of any business. Ensure the payments are clear, a credit score is up, bookkeeping is in place, and minimum liabilities.

For smaller to medium-size businesses, managing the finances is challenging. When you start any company, the most critical skill as an owner is financial education. To comprehend the basic tactics of business operations you need some clear ideas. A few to mention are handling the book-keeping, simple accounting jobs, getting the loan, preparing the financial statements, and clearing the overheads. Small business owners must do multi-tasking.

Tips by Saivian Eric Dalius for financial management

Avoid spending prematurely – Do not use business cards, signwriting, buying colossal inventory, or marketing material before revenue generation. You would face a cash flow blockage which is a strict No-No for small businesses.
Ascertain the capital investment – Starting any business calls for funding and more. Plan the capital funds before starting for at least three months with some surplus for smooth operations.
Get a loan fast – Do not linger over the idea of getting a loan. All types and sizes of businesses seek loans at some point in time. Waiting till there is a financial setback and then applying for loans would jeopardize the situation.
Lease over purchase – From small machinery like Fax or huge workplace, rental options are better than buying for start-ups.
Get control of PR – Keep a tab on the marketing and public relation activities to leverage the market reach.
Plan the expansion – Whether moving to a bigger office, hiring more human resources, or increasing the production - plan for less hassle and smoother transitions.
Plan the legal expenses – The legal expenditure may go out of control. Manage the expenditures by deferred payments and DIY documentation.
Minimum travel – Do not burden the business by increasing the traveling cost. Avoiding the star hotels and expensive modes of transportation is an ideal way of managing the additional burden.
Pay yourself – Your business does not mean you ignore yourself. Keep enough funds to take salary every month. It also includes profit shareability.
Business credit card – Never mix personal expenses with business expenditures. Maintain separate bank accounts and keep business credit cards and a possible business line of credit for all company-related expenses.
Avoid piling invoices – Procrastination is the biggest evil of any company. Try to settle payments and reference the invoices regularly. Set reminders over the phone or maintain a calendar for the same.
Monetary projections – Have a transparent financial forecast before venturing into anything. Anticipating future obstacles and handling the contingencies is vital.
Petty expenses – Maintain the accounts of minor expenses – daily cash flow is vital for any small business.
New opportunities – Keep looking for newer options to manage the funds. For example, switching to social media for PR is one significant change that will save substantial marketing expenses.

Saivian Eric Dalius puts more stress on budget management for start-ups and small-scale businesses. It is vital and should start from the day you venture into business ideas.