Navigating the first year as a business can be difficult. There can be plenty of ups and downs to go around, but it’s important to keep the big picture in mind as you press forward. At Seed Financial, it’s our business to help small businesses like yours succeed. Keep reading for tips for small business financing in Atlanta.
Revenue does not equal profit
When you’re new to running a business, the first bits of money coming in can be incredibly exciting. It feels like whatever you’re doing is working, at least to some degree. It’s easy to get anxious to build right away, but you should remember that money coming in is revenue and not necessarily profit. Profit is revenue that you make beyond operating costs that include paying for materials and labor. It’s realistic to expect your profit margins to be low in the first year, but you can do things like adjusting the cost of products and services or finding ways to decrease production costs.
Prioritize your finances
Many small businesses fail within the first year because they don’t properly prioritize their finances. Don’t let your eyes get bigger than your wallet as you see growth within that first year of operation. Set goals and checkpoints to keep yourself on track. Monitor your cash flow and stay on top of any payments you’re required to make to lenders. Additionally, have an emergency fund that can take care of unexpected expenses.
Limit your own salary
No matter what kind of business you’re running, profits in the first year of operation are not expected to be through the roof. The one place you can cut expenditures is your own salary. By limiting how much you take home, you can not only grow the profits of your business but you gain the trust of those who you employ. They’ll see that you’re willing to make necessary sacrifices for the good of the company.
Take care of yourself
There’s a lot of effort that goes into running a business. You’re the one who had the vision for how everything should operate and what will help you achieve your goals. However, none of it will matter if you don’t take care of yourself. Make sure you pace yourself and monitor your health so you’re around to see your business continue to grow. It’s possible to make your health a priority while also operating a business at a high level.
Always keep learning
Whether this is the first business you’ve started or your fifth, there are always opportunities to learn. Take the new experiences that come with everyday operations and learn from them. The more that you’re willing to learn from your experiences, the better off you’re going to be in the short-term and the long run. Be willing to take on advice from those in your industry and find ways that you can apply it to your business to grow.
Get help from Seed Financial
Reach out to our team at Seed Financial to learn more about how we can help your business. We not only offer small business financing in Atlanta but across the US as well. Give us a call today at 770-343-0253 or send a message via our contact form to book your appointment with our team of financial experts. We’re dedicated to helping small businesses succeed.
