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5 Rules Of Money Management For Small Businesses

Individuals must know how to manage their money to become rich so you also need to know how to manage your business money to be successful.

Just like an individual, your business also needs to pay for the cost to survive. How to spend money effectively without getting caught in debt or going into debt?

Individuals must know how to manage their money to become rich so you also need to know how to manage your business money to be successful. With businesses, you will have to work with employees, suppliers, tax authorities. How to work with them, you always take advantage of the money you spend.

Here are 5 rules to help you manage money for your small business:

1. Minimise The Cost Of Life

If you are managing your own small business for the first time, the above principle is extremely important in the first few years. Calculate how much money you need to cover your monthly living and withdraw the right amount of income from your business. With the remaining profit, invest back into the company. Let that money serve growth.

It will be exciting to make money from a business, but many new business owners use it on expensive vacations or homes. Resist those impulses. Wait until the business has gone through a few years, then you can start taking those profits to enjoy yourself.

2. Do Not Hire Employee Early

In a fledgling business, the biggest expense, by far, is employee salaries. As the business gets busier and you seem to be overloaded, it’s time to hire a new employee right away. However, make sure it is essential.

Never hire staff until you need them. Always ask your current staff to work hard to make sure they work to the best of their ability.

3. Strategic Use “Jit”

JIT is an abbreviation of “Just In Time”. This is a strategy to reduce the cost of loans and inventory in all business forms.

For example, if you estimate you need to cover your expenses for next year, there’s no need to borrow the entire amount at once. Because if you do that, you’ll have to pay interest on the entire amount when you don’t use it up until the end of the year.

Instead, you will borrow that estimated amount in the first 2 months of the following year (except for the month of the new year holiday). Then borrowed it again for the next 3 months. Following this rule, you will reduce the total amount of interest payable to the bank. So that money will increase and you save a large amount of money after a long time.

4. Agreement With Supplier

When dealing with external contractors or suppliers, such as delivery services, food delivery, electricity, security services, do not hesitate to negotiate contract terms. Choosing a provider that allows you to pay after 30 days of receipt of service bills instead of paying immediately.

That grace period allows you to better manage your money and organise your bills in order of priority. Many peers always allow this but need to be willing to ask when they want to pay immediately.

Year: Do Not Pay Money To Wage Payments

State tax law requires business owners to deduct an amount in addition to employee salaries such as Social Insurance, Health Insurance, Union Funds and Unemployment Insurance for each payment period. Businesses will have a certain extension period before they have to submit this fund report. As a business owner, it’s important to keep those funds separate from other funds. Don’t use this money to invest or cover daily expenses.

Instead, put the money in a separate account that you cannot touch. This will help you avoid spending money that you don’t have to. It’s a good habit to keep your business free from violations at the end of every month. State fines will not tolerate such cases. Nowadays there are a number of maintenance planning training and maintenance planning courses were available online from that you can get more ideas for maintaining your business easily.

How to write a press release for your small business

The press release has been a mainstay of public relations since its inception decades ago.

And while it may seem a bit old-school to some, there’s a reason press releases have stood the test of time — they’re effective and produce results.

From generating media coverage to positioning yourself as a thought leaders in your industry, and ultimately help your business succeed and grow — there are a number of reasons why business owners need to learn how to write and distribute a press release.

Today, I’ll focus on part one of that process: how to write a press release.

If you’re trying to decide whether or not something warrants a press release, all you need to do is answer one question: Is it newsworthy?

For something to be newsworthy, it must be something that audiences outside of your internal organisation will care about; something that has significance to a reporter and their readers, viewers, or listeners, or to other external stakeholders (potential investors, etc).

Here are a few factors to consider when determining if something is newsworthy:

Impact: Who will this information affect? The broader and larger the impact, the more people will be interested.

Timeliness: Why does this information matter now? Does your news relate to or tie back to a significant “moment in time” or event of some sort?

Proximity: As a small business, this one should be easy to understand — proximity matters. For many small businesses or nonprofits, your news will likely matter more to local publications than to national ones, or publications that focus on other regions.

Name recognition: Clout that comes with big recognisable names (well know people, organisations, companies, etc) will likely increase the interest in your news. If you’re partnering with, or involved with a big name that might generate this type of attention, consider issuing a press release.

Now that you know when to write a press release, let’s take a look at how you actually do it.

Here, I’ve outline the four major components of an effective press release:

1. The headline

The headline should be attention grabbing and encourage the reader to want to know more, while also being explanatory. This isn’t the time to use vague language.

Formatting tip: Make sure the headline is written in bold and the subhead is italicised.

2. The body

The body of your press release should stay as concise as possible, while making sure to get all of the important information across in an engaging manner. Reporters that read your release aren’t likely going to have the time to read page after page trying to understand the news.

There aren’t really a prescriptive number of pages or word count. It can vary depending upon the information the release is covering. The key is to keep it concise and not overly verbose, but at the same time make sure that you have all the relevant info included. So, the length can really vary depending upon the announcement.

Here are other things to keep in mind when pulling together the body of any press release:

The dateline: Begin with a dateline of the city in which the press release originated and the date it was issued. This is especially important for small businesses that are distributing their press release to the local media.

Keep it factual: Your press release should focus on answering the five W’s: who, what, when, where, and why.

Factual doesn’t have to mean dry: While your press release should be as concise as possible and stick to the facts, it doesn’t have to be as dry as say, a research paper. Keep the language engaging.

Avoid lazy mistakes: Typos and poor grammar in press releases make your business look unprofessional, and will likely turn off reporters.

The quote: Most press release include a quote by the most relevant spokesperson for the topic of the release. The quote provides space to add some color commentary (going a bit beyond the factual basis of the rest of the release) and can also be pulled directly from the release by journalists to use in articles.

3. The boilerplate

This is the about us section where you provide background on your organisation. It should be included following the body of every press release. The language used here can be the same in every release. Don’t forget to link to your company homepage to drive readers back and provide more information.

4. Contact Info

A reporter reads your press release and is interested in getting more information — great! But how will they know where to go?

Be sure to include relevant contact info for any inquiries that may arise from your press release.

This information should be listed at the very end of the release.

It doesn’t begin and end with creating the press release.

Keep in mind that while a well crafted press release is the foundation of a great public relations campaign, your efforts should not begin and end with the creation of the release.

Press releases work when you get their information in the right hands (reporters, other stakeholders) that will further extend the reach of your news, ultimately resulting in measurable business success.

Stay tuned for part two, where I’ll explain how to distribute and get results from your press release.