The best way to keep a business solvent and budget yourself properly is to always keep ahead of your financial reality. For a new business, the first year can feel like searching for a lighthouse in a thick fog. Once you have one year of financial records, planning should become more manageable.
By looking over the month-to-month reports from previous years, many business owners can measure their need for small business funding during leaner months and set up systems for saving during times of more robust business. While you might still need to seek out business funding sources, you will be better able to manage repayment and how to invest those funds with this kind of active accounting.
As an owner and manager of a small business, it is your job to maintain normalcy throughout your business year. The financial strain of a lean season should not be felt by your consumers, your staff, and ideally yourself. All businesses need to borrow money for growth; the trick is borrowing wisely and not becoming a victim of predatory lending practices that have shuttered far too many businesses’ doors. Managing small business funding is no easy task, but each year it should become a little easier.