From the growth and success of your business to you and your employees’ livelihoods, there is so much at stake when it comes to making financials decisions for your business. What is the secret to making confident financial decisions that fit your business’ plans and goals? How do you begin to make sense of it all?These 4 tips will help you make smarter, more strategic financial decisions as you focus your efforts on scaling your company:
- Get accurate and timely data
Before making any long-term financial decisions, you need to obtain accurate and timely financial data. It would surprise you just how many small- and medium-sized companies make big decisions without first going over all of the details. It is impossible to make wise financial decisions and create a successful plan with inaccurate or incomplete financial information. The key is to make sure accurate data is informing and driving your mission-critical decisions.
- Seek advice and support
If you have a strong support network and you are not sure what the next step is for your business, seek advice. Get counsel from people around you that understand the situation or have been in a similar situation themselves. If you have a mentor, ask for their support and guidance. The secret is to discern when you have enough information and support, and when to strike out on your own and make an actual decision to get things moving forward.
- Create different financial scenarios
Once you have collected accurate data, developed a strategic forecast and received advice on how to proceed, it is important to create different financial scenarios. What if you receive a big purchase order? Do you have enough cash flow to fulfill the order before getting paid? What if you add a member to your team? Can you afford the additional salary? Modeling some what-if scenarios can help you figure out the timing of your spending and business financing decisions.
- Explore all of your financing options
Before applying for business funding, it is critical to research all of your financing options. Every business and industry is unique. And so are the reasons why a business owner seeks additional working capital. Ideally, the business loan you choose should provide the cash you need quickly and not incur an excessive amount of debt. You want that additional capital to be flexible and have the ability to grow with your business.
Whether your immediate goals are scaling your company or opening your business’ doors for the first time, these tips will help you make better financial decisions that will support your business’ growth long-term.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their alternative small business loans solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.