5 Wise Steps Business Owners Should Take during the New Financial Year

Running a business is not easy in the 21st century when competition among businesses is at its peak. It requires dedication and commitment to make your small business grow and become a success story. For this, the business owner needs to look at many factors, like finances, management, employees, payments, etc.

Financial management for any business owner can be overwhelming at times. However, it is important to keep track of how your money is flowing in and out of the company. company. One must also track how well the company is doing in managing finances and overall operations.

Business management and finances determine how long a company will remain profitable and its future growth. To climb the ladder of success, one needs to manage these aspects efficiently. Otherwise, the business might plummet when it faces rough times, which is inevitable in any business journey.

Any aspiring entrepreneur might feel like this is an uphill task. Even if one is from a financial background, they might not be experienced enough to handle such affairs.

However, you can simplify this by keeping and regularly updating a checklist to supervise your company’s overall status.

Here are 5 business tips for any small business owner when it comes to business management in the new financial year:

1. Review your budget

Make it a habit to look after your expenditure, not only yearly, but also quarterly. This will help you to analyse your expenditure patterns and minimise any unwanted expenses. You will get to see how your investments are performing and make changes accordingly. Moreover, it will help you maintain a cash flow statement, which is very useful for budgeting.

Don’t hesitate to seek help from someone for something that is not in your area of expertise. This will only help you to manage your business more easily and efficiently.

2. Make use of technology

New technology and updates can help your business operations run smoothly. They give you a better platform to manage and review your daily work. The need for technology differs from business to business.

Sometimes, business owners postpone technological upgrades, which is not a wise choice at all. They do so to avoid unnecessary expenses, but they forget that upgrading to a new and better way of doing business is not at all unnecessary.

App-based systems like the OkCredit digital bahi khata app allow you to keep all your expenditure records in one place, which you can review at any point in time. It could simply be your whole balance sheet right in your pocket, on your mobile. Such apps are useful to every business, regardless of its product or service.

3. Automate your bills

Any business will have several bills to be paid, that too on different dates. These can be receipts from vendors or raw material suppliers, employees’ salaries, rent, or any other personal payments which are due monthly. It is not possible to always remember or keep checking the ledger for each due date. Thus, managing bills manually can lead to missing out on some payments.

To solve this, use net banking or online payment apps to automate your periodic bill payments. There are even dedicated apps like OkStaff to regulate and manage timely salary payments for your employees. Simply approving these payments will ensure that paying bills does not become an added distraction for you. As a business owner, your focus should entirely be on improving your business.

4. Maintain your credit score

A credit score expresses the creditworthiness of an individual or a business based on an analysis of a person’s credit files. Making bank payments or other due bills on time will ensure a good credit score for you as an individual or your company.

A good credit score will help you to secure a loan from the bank easily if needed in the future. Most startups or small businesses require loans to expand their business at a particular stage in their business journey. This is both common and essential for such heavy expenditures. Maintaining a good credit score will also help you survive difficult times with minimum hiccups.

Moreover, a decent credit score also helps you as a business owner when you look for investors for your company. A good credit score will, in turn, help you get a good investment, as investors will be impressed with your credibility and how much you care about your business.

5. Review your employees' work and make changes accordingly

As a responsible business owner, you must ensure that your staff is skilled and experienced. Review your staff's productivity regularly and ask other employees for their reviews. Hire new employees if needed, or make changes if someone does not fit in.

Take suggestions from your employees as well. Ask them if they feel if something needs to be changed within the company, or could improve the work culture. This will benefit both your company and your employees. You must be willing to take reviews from anyone and everyone because you never know who could come up with the next innovative business growth idea.

Listen to customers' issues as well. This will tremendously improve customer relations, which is vital for any business growth to happen.

Also read:

1) Best Tips for Customer Retention for a Small Business
2) Tips to Understand Your Market while Starting a Small Business
3) Tips for Businesses to Overcome the Covid Blues - Revival Tips for Businesses
4) What are the keys to success when operating a small scale business?
5) OkCredit: All you need to know about OkCredit & how it works.

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FAQs

Q. What is a cash flow statement?

Ans. A cash flow statement shows how changes in the balance sheet, accounts, and income influence cash and cash equivalents.

Q. Are there any government schemes to help small businesses grow?

Ans. Yes, the Government of India has taken steps to help small businesses to grow by giving them some tax redemption benefits and loan schemes. Owners can take loans with low-interest rates through such schemes, for example, Mudra Loan, Startup India, and other MSME schemes.

Q. Should I hire any consultants for the management of my business and finances?

Ans. It solely depends upon you as a business owner. However, in times of need, it is advisable to consult professionals, as one cannot single-handedly manage everything in a business. Moreover, they have much more experience and knowledge in handling several businesses, which could have a unique advantage for your business as well.

Q. Is it necessary to have an online presence for my business?

Ans. While it isn’t completely necessary, it is still advisable to have a good online presence for any business, as the internet is a platform where you could reach new customers. A solid online presence is also seen as a sign of the authenticity of a business.

Q. How can I improve my company’s profit margin?

Ans. Good management can lead to better-operating profits. Additionally, if you are in a business where you need to purchase raw materials, look for suppliers who are close to your workplace. You can then get materials at a cheaper price.

Q. What is the most important point to ensure a company's reputation?

Ans. Quality work ethic, product, service, customer satisfaction, after-sales services, etc. are all important points to keep in mind to build an esteemed business. Never compromise on any of these points to ensure your company’s long-term growth and reputation. No matter how small or large a profit you might make by manipulating any of these points, it is advisable to adhere to such principles.