The 5 financial habits of successful small business owners

21/02/2018 05:30

As a small business owner, you’ll be aware that practising good financial habits can make all the difference to the success of your business.

Having finances that are out of control and lack consistency can result in poor decision-making and can even cause hostility between your company and your customers.

The five financial habits laid out below will help you prepare your business for the future without sacrificing relationships.


Reviewing finances regularly

One of the biggest mistakes that businesses tend to make these days is they don’t spend enough time reflecting on their behaviour and assessing how they can alter it to facilitate success. In terms of finances, this means conducting regular reviews that can help you to spot patterns and allow you to capitalise on them. You can do this weekly or monthly depending on the way that your business is run and managed.


Maintaining a clear budget

Budgeting is a word that most of us don’t like the sound of because it tends to denote restriction. In terms of running a successful business though, a clear budget is really important, especially in the early days. Lay out a budget and review it at the end of each month in line with your overall profits. If things are going well, you can adjust your budgets accordingly.


Reduce debt gradually

As a new business starting out it almost goes without saying that you are going to have some debts to your name. Debt can be a good thing as it can help you to achieve long-term health and growth, but unnecessary debt can be a burden to you and your business. In order to manage this well, it’s important that you have a clear payment plan in place and start to reduce the amount that you owe each month.


Take advantage of tax deductions

Savvy business owners know how important it is to take advantages of the tax benefits available to their business. Deductions help you to reduce your taxable income and therefore reduce the amount that you have to pay out to the government. Anything that can help you and your business save money, particularly in the early stages, is something that you need to be taking advantage of.

If you are an SME that needs help with capital funding, get in touch with us today to find out about how we can help your business flourish. 

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