Ann Marie Wallace, Executive Director of the Salt Lake Chamber Women`s Business Center along with Sharon Opfermann, owner of Camp Bow Wow shared their tips for managing money as a business owner.
4 Tips for Managing Small Business Finances
Being the owner of a small business requires a lot more than knowing how to make a fabulous product or provide a wonderful service. One of the most important aspects of operating a business is money. Understanding how to budget and manage cash can make or break your business. Here are four tips for women business owners to become good money managers:
1. Keep Track: Get to be really good at keeping track of your money. If you have software like QuickBooks, make sure you learn to use and maximize it. If you don`t, keep track of money earned and spent on a spreadsheet.
2. Manage Cash Flow: Cash on hand is more important than money you expect to receive in the future. Avoid cash shortages by collecting revenue as fast as possible and ensure enough money is in your business account before it is needed to pay expenses.
3. Understand Reports: Whether you or a bookkeeper run reports, make sure you understand what the reports are telling you about your business. You can build confidence, identify trends and make better decisions.
4. Be Proactive and Not Reactive: Estimate and plan ahead so you can make strategic decisions rather than reactions to avoidable problems. Remember to overestimate on expenses and underestimate on revenue.
By becoming a good money manager, you can grow your business, experience peace of mind and be financially ready for new opportunities!
Check out the Women's Business Center for more tips and courses on starting a business.