Bouncing Back: How Entrepreneurs Can Move Past Financial Setbacks

When you’re followed by previous financial trouble, many things can feel out of reach. Starting a business, however, doesn’t have to be one of those things. With a little planning and using the resources that are available to you, becoming an entrepreneur can help rebuild your confidence and offer further security for your future.

Tighten any loose screws

If you’ve faced financial challenges before, the first step to starting a new business will come as no surprise: figure out what your assets are and learn how to strengthen them. Bad credit scores can affect so many areas of our lives, so working to improve yours is always a good place to begin. Paying off big credit purchases and making sure bill payments are posted on time can be a huge and simple boon for your score.

Every improvement will make a difference as you start your new venture, but don’t worry if your score is lower than you’d like; there are all kinds of loan options for those with lower credit scores, giving your credit the chance to climb and you the opportunity to get your business rolling. Keep in mind, you don’t need to navigate these challenging business financial waters on your own. Schedule an appointment with KJH Financial Services for help with comprehensive financial planning.

Assess—and enrich—your standing

You can work on your credit score until the cows come home, but the first real step to making your business a success is to assess where you are and what you need. There are thousands of programs and grants for starting a small business, from the government’s Small Business Association to local entrepreneurial groups. Everyone wants your venture to succeed, so seek out opportunities to make your foundation a little more stable.

When you know where you are, it’s time to seek a business loan to carry you into the future. There are plenty of lenders who designed their businesses for those with financial baggage, so research a variety of different groups and find those who can give you the best rates.

Enlist help

You can be an expert in your business, but it can be a great move to bring in someone who is an expert at business. Business coaches can help you succeed at every step, from marketing yourself to researching the market and more. There is so little benefit to reinventing the wheel when instead you could be reaching out to customers and creating a business to be proud of.

There are usually support structures for start-ups in different cities and counties, like local libraries or local small business associations. See what tools are at your disposal so that you can focus on growing your business instead of starting all over.

Cover yourself — and your business

The one thing we know about life is that it is unpredictable; change lurks around every corner, so protecting yourself and your business can give you considerable peace of mind. Creating an LLC can be a great benefit to many business owners by limiting your liability, giving you greater flexibility and even tax benefits.

Filing for yourself will help you avoid those high lawyer fees, or consider filing through a group like ZenBusiness, which can help go over the different regulations for each state before you get started. Insuring your business can also be a great benefit, protecting you further from potentially damaging legal actions.

Your dream business doesn’t have to just be a dream. No matter where you are, there is a path towards owning your own business. Creating a liability shield and reaching out to a financial planner like Kimberly J. Howard, CFP at KJH Financial Services can give you the tools to set yourself up for success and make your dreams a reality.

Are you ready to start your next business venture? Call KJH Financial Services at 781.413.4879 for the help you need to get started today!

How to Cut Down On Some of Your Key Business Costs

calculator-calculation-insurance-finance-53621For many small businesses, the best way to increase profitability is to look for ways to cut expenses. Every dollar you save is another dollar in profits and as long as you maintain quality, efforts toward cost cutting can be an effective way to provide financial relief to your business. 

You might not be able to get rid of many of these expenses altogether, but there is a good chance that you could cut your costs considerably by managing small business expenses more effectively. The following are a few of the major expenses that can impact small businesses and some of the ways they can be reduced.

Rent

Rent is usually one of the biggest expenses for a small business. If you are renting space, you need to make sure the location is serving you well. Think about whether you need all of the space you have. If not, move to a smaller, more affordable location. If your business does not depend on traffic, you could consider moving to a place that is away from busy commercial areas. 

Marketing

If you want to get more leads, attract new customers and build brand recognition, you are going to have to pay for marketing. With that said, you might be able to find ways to save money on marketing. Try to focus on the marketing channels that offer the best ROI. Investigate the types of marketing that offer a good return in your industry or talk to local business owners to find out what works well for them.

Equipment 

Depending on your business, you might need all sorts of equipment. If you are looking at an expensive piece of equipment, you might want to consider buying it used. As long as the used equipment is in good condition, it can be a way to save a lot of money on an otherwise expensive purchase.

You should also invest in preventative maintenance for any expensive equipment you have. The maintenance might cost money over time, but it can extend the life of the equipment and help you avoid expensive repairs.

Utilities

Utilities can be another major cost for some businesses. You have to cover costs like electricity, water, internet, phones and gas. One way to cut these costs is to set rules around how some of these utilities are used. Make sure resources like electricity and water are not being used wastefully. You could also consider buying more efficient appliances and equipment. Some of these pieces might cost more upfront, but they could save your business money over time.

Employee Compensation

Labor is the highest cost for many businesses. You definitely want to have a good team of employees around you, but you also want to make sure you are not spending too much on labor. Evaluate your payroll to make sure you really need all of the employees you have. In some cases, you might only need a part-time employee where you currently have a full-time worker. Making some of these adjustments can make a huge difference for your company’s bottom line.

As another option, you could also consider hiring a virtual assistant to handle some of the work that would go to one of your employees. This is usually more affordable than keeping an employee on the payroll and virtual assistants can help with a wide range of tasks.

Take the time to look at every expense to see if there is a way you could cut costs. You might not be able to find huge savings on everything, but every dollar counts when you are running a small business.