As a small business owner, you’re always thinking about your startup. It’s only natural. After all, you’ve put your good name and — more importantly — your money on the line.
There’s only one problem: research shows 90 percent of all startups fail.
With odds like those, it’s hard not to fret over your finances. If you want to beat the odds, check out this list. It has tips that will help you keep on the right financial track.
Outsource more employees to save on staffing costs
A startup, micro-business, or small business—whatever you call your venture, it’s small. When you’re first starting out, you probably don’t have many employees.
This can be tricky if your business really takes off. Your small staff can’t handle an uptick in business. But your new bank ledger means you aren’t in the position to hire more in-house, full-time employees.
Outsourcing is becoming an increasingly popular way to get the help you need. Outsourcing lets you increase your staffing without spending money on costly, long-term employment.
Shop around for business banking accounts
Business banking isn’t always convenient or affordable. Many of the biggest banks simply don’t care about your enterprise. You’ll be expected to pay upfront for cookie-cutter services.
If you join a credit union, you can expect all the usual services you would get from a commercial bank—from business credit cards to commercial mortgages. However, making the switch comes with the added benefit of:
Profit sharing: When you join a credit union, you become a shareholder. That means you get to share profits through annual dividends.
Lower fees: Most credit unions reinvest remaining profits back into the business to provide lower fees and higher interest rates on deposits.
Personal services: A credit union is a collaborative, people-based financial solution. You won’t be just a number — you’re a member, partner, and neighbor.
Flexibility: When you’re working hard, you can’t always make time to visit a bank during usual business hours. A credit union like First Calgary Financial can help you out with mobile business banking teams willing to come to you.
Stop paying full price for everything
Have you heard you have to spend money to make money? While this is true, don’t get caught spending too much on basic goods and services.
Regular expenses like equipment, stock, or other services shouldn’t put a stranglehold on your business’ budget. If they do, consider shopping around for the lowest price — and don’t be shy. You may be able to negotiate a lower price if you’re willing to put in the work.
It won’t always be easy, especially if it’s a relatively new business partnership. But you can increase your chances of success if you review these tips to improving your powers of persuasion.
Practice makes perfect, so get started. Your clumsy attempts at lowering a price will eventually turn into a smooth operation.
Every startup is different, so some of these tips may not work for yours. But give them a shot. Anything that gives you a leg up is worth the effort. It might just catapult your business into the top 10 percent of success stories.