Small business is big business, and their success is essential. Small businesses require planning, expertise, cashflow and the right opportunity—which you have to be poised to seize when it comes along. So what are some of the things that small businesses should keep in mind in order to #Save4Success?
Make sure your business is running as efficiently as possible.
Business owners should do a thorough analysis of their current operations. With a few tweaks, you can often find the capital needed to fuel growth locked in your own businesses. Where should you look?
First, examine your fixed costs – keep your fixed expenses and overhead low. A lean business is a more nimble business.
Second, make sure that you are managing your cash flow effectively. Many small businesses can improve their cash flow by speeding up receivables. One way to do that is by using remote deposit services to make electronic deposits through a scanner linked to your computer or your mobile device. It’s a much faster way to get receivables into your account than by dropping a bundle of paper checks into a bank’s overnight deposit box.
Review your available funds.
Are you prepared to take advantage of a market opportunity or handle a cyclical dip? If you need a little extra working capital, you might consider a business line of credit so that you can meet short-term needs and keep your big-picture plans on track.
Ensure that you are properly covered.
As your business grows and evolves, your insurance needs may also change as you hire employees, add vehicles or equipment, rent or buy office space, etc. Conduct a regular review of your insurance policy to ensure that everything is up to date and properly covered so that you can sustain an unexpected loss that is insurable.
Consider if it’s time to save.
The typical reaction to earnings is to pump them back into the business for faster growth. For many small businesses that’s exactly what they should do, and it helps to create opportunities. But let’s say you have some longer-term plans to buy a warehouse for that new equipment, hire internationally to expand, or you are preparing for a large expenditure. Talk to your financial partner about if a Money Market Savings account or a Commercial CD might make sense for your unique situation and business objectives.
At Sandy Spring Bank, we try to learn as much as we can about you and your business, so that we can create a unique package of solutions to meet your financial needs and goals—however you define them. No matter where you are in your financial journey, we’re here to be your advocate and to help you #Save4Success. To learn more about all of our saving solutions, stop by one of our Community Offices or visit sandyspringbank.com/save.