According to a Wells Fargo study, about 80 percent of millennial entrepreneurs had the ambition of growing their businesses, but 48 percent admitted to being only “somewhat” knowledgeable about their companies’ finances. As a business owner, you need to have sound financial knowledge and strategies in order to survive and grow in today’s competitive business world. Here are a number of useful financial tips that can help you succeed.
Watch Your Credit
About 14 percent of the respondents in the Wells Fargo survey said they used a credit card to start their businesses. If you are able to grow your company through this method and pay off your credit card debt, you do not have much to worry about. However, if you need to get a business loan in the future, having outstanding debt on your credit card can jeopardize your chances of having your loan approved.
Consult a Financial Advisor
If it is within your budget to hire a financial advisor, by all means do so. According to Global Resources LLC, a financial advisor can help you devise strategies for achieving and maintaining positive cash flow, reducing costs, and accelerating profitable growth. In other words, you will have an established system for keeping your business financially sound over the long run.
Pay Off Your Student Loan
A recent Manta survey found that 34 percent of millennial entrepreneurs have student loan debt. Student loan debt is not only a big financial burden; it can also undermine your credit score and make it difficult or impossible for you to secure a business loan. It is important that you make your loan payments on time and try to pay off the loan as quickly as possible. Consider getting a better repayment plan or refinancing.
Use a Financial Management App
Failure to be mindful of finances is one of the main contributing factors to financial problems. If you cannot afford professional assistance, you can use one of the many free financial management apps to manage your business finances more effectively. These apps can help you keep track of your finances, avoid exhausting your budget, spend wisely, plan ahead, and even check your credit score.
Devising and implementing an effective financial management strategy for your business can be a very challenging task. However, it is a necessary process that can help you build a stronger foundation for growth and success.
Author: Sally Writes