Last Updated on Feb 3, 2020 by James W
For a business to succeed and make it to the next day, it needs to be able to afford to keep its doors open. With so many costs to consider from rent to taxes, you need to find a profitable business model fast, as well as a budget-friendly solution to your services. These top five financial solutions can help ensure that your business thrives.
1. Accounting Solution
Do you want to be able to process payments quickly, never have a dead period while you wait for a new product, and do it all in less time and for less money? It seems totally impossible until you realize that is precisely what management systems are designed to do. You simply need to invest in a comprehensive system that connects all your different processes together. This way, if your inventory runs past a certain threshold, your system can automatically send out a request for new stock. This request will be sent to your suppliers, and once they receive the order and send an invoice, your system can automatically send you an alert. No more waiting on the phone, and no more human error just because things get busy.
2. Merchant Account Services
If you want to be able to process credit cards (a must, in today’s world), then you need merchant account services from a credit processing company. The only problem is that this is not always straightforward. Some industries are labeled high risk, no matter how profitable they are. Businesses that rely on subscriptions, for example, are going to face a lot of fallbacks simply because an average of 15% of recurring credit payments don’t get paid.
This has nothing to do with you at all and is instead a statistic that customers are responsible for. Depending on your business model, you may need to open a High Risk Account from a company like Limitless Payment Solutions to overcome the issue.
3. Cashflow Management
Businesses typically operate on credit, but knowing how much you have and can expect to have throughout the year is key to standing on your own two feet. Reducing costs can help you improve your profit margin, but if you want to have a healthy cashflow, you are going to want to put it into your business’ savings account for a rainy day.
4. Cashflow Prediction
As time goes on, you will be able to predict how much profit or cashflow you can expect throughout the year. Having this data can help you predict when your business will be tight, which is exactly when that cashflow savings will come into play.
5. Payment Protection Schemes
Last but definitely not least, you need to be protected. Offer a service to a customer that doesn’t pay, and you need to take on the cost of hiring a lawyer and going to small claims court. Unfortunately, the effort of this isn’t always worth it.
That is why having payment protection schemes, both offered by other businesses and in-house, is key to protecting your business and ensuring you get paid on time, every time.