5 Smart Ways To Grow Your Business as a Sole Trader
Juggling on a daily basis to manage your finances? Do you really plan your expenses well to balance your personal and financial aspects of the business? Are you drawing funds from your business randomly? If you have answered YES to even one of the questions. You know you are not managing it well.
If your business is not covering up your expenses, you need a strategic financial plan. Our award-winning accountants provide their own insights, on acing your financial strategy with ease.
Be paid on time for a subsequent cash flow management
Our founder & director of The Kalculators, Kaleem Ulah says, “A leading cause of failure for many small businesses is failing to get paid on time.” If you have many late-paying clients, it is important for you to review your billing system. To be paid on time is to either bill your client upfront or take an advance to secure your initial project expenses. You can also ask for a deposit to determine if the client will be paying their dues on time or not.
Do a favour by paying yourself!
Compensate yourself with a wage, do not ignore the importance of being paid. According to one of our accountants, it is easier to put all your money towards your business. You may not realise the harm you are causing, by overlooking your role in the company. The majority of small business owners neglect the responsibility of paying themselves. Why? Cause they do not have the funds to pay themselves as it was either important to invest in the new tool or you had insufficient funds. If it was the latter, then it is time to review your cash flow management.
Be disciplined with your guidelines
Do you regularly work out the expenses that need to be rearranged or reduced? Are you switching to cost-effective options? Many of you may believe that you are! However, businesses do not realise that they could switch to cheaper substitutes (that avoids compromising on quality). A real-life example would be of a client of The Kalculators, who runs his own grocery store. This client had 3 business stores in Queensland. However, he was always at the borderline, with his own profits. As per the client, he was doing everything he could to accelerate the business growth. However, an experienced accountant of the team (The Kalculators) advised him to find alternative options such as leasing a part of his commercial space, reducing energy-based expenses and fuel expenses. The projected estimates by our accountant were fruitful to the client. There was a proven reduction of variable costs by 18 per cent, this not only helped the client to pay himself a wage (which he initially avoided) but also invest in other areas of operations.
Are you looking for government grants?
Not many business owners are eligible for grants. However, keeping your eyes open in such circumstances may help you take advantage of even better opportunities. As Madeeha Usman, the winner of Ausmumpreneur 2021 says, “When you are aware of your surroundings, you come across many networking opportunities, in turn fuelling your brand awareness.”
Businesses may be eligible for grants in the following circumstances:
- Exporting
- Innovation
- Research & development
- Business expansion
You can also find more about grants and support programs on Australian Business Grants
Lastly, always consult a professional.
If you think you know how to operate XERO and you are internet savvy, then you are wrong! Or even if your receipts are highly organised. There is a reason they are called professionals. An accountant is not here to only manage your financial statements or lodge your tax. An experienced professional can help you manage your short-term affairs for long-term strategic growth. According to our practice manager, Ritali, “Many individuals do not recognise the importance of accountants until they have to amend their taxes, or they have faced issues in the past.” An experienced bookkeeper of the firm also mentions, “We have also seen individuals who have not managed their payroll efficiently and now face compliance issues.”
Hence, you see why consulting a professional is always a good idea!
It is essential to understand that running a business is not just about making profits. Creating a strategic plan by rearranging or reducing your expenses, will help you step up from the survival phase of your business.
Looking for expert support? Speak to our chartered accountants and bookkeepers about your business. Give us a call on 08 7480 2593 or click on Schedule A Meeting.
About the Author / By Kaleem Ulah
