Starting a small business? In this modern world of e-commerce, starting your own business is the best decision. Ever since the COVID-19, nearly all businesses moved online. Of course, all customers did too. The increased traffic on online businesses is a motivation for people to start their small ventures. But, starting a business is not as easy and convenient as it seems. you will be faced with several issues. Managing your finances will be one of the hardest things you will have to do in the process. It is also one of the most important things that you need to do.
First of all, a business owner should be aware of all aspects of his or her business’ finances. They should be aware of basic accounting tasks and how to carry them out on their own. A small business owner might not have other employees working for him or her. For example, if you just started a cake business, you are your employee and employer. You should be aware of basic accounting tasks, delivery costs, costs of ingredients, etc.
Here are a few tips to manage your small business.
- Record all costs.
Let us consider the example of you as a cake business owner. Remember to record all costs. Most small business owners do not measure the cost of their product poorly hence, do not get a good profit. So while measuring the cost of a cake, do not forget to add the cost of gas and electricity along with the prices of the ingredients.
- Buy a bulk of raw material.
While buying raw material for your business, always buy in large bulk. This will save up a huge percentage of your raw material cost. Regular retailer price of an item individually is much more expensive than buying in a bulk. Additionally, you are also doing the environment a solid one by using less unnecessary packaging plastic. For example, the cost of one liter of cooking oil would be $3.50, while the cost of 10 liters of cooking oil would be $28.h
- Price your products cleverly.
Remember that the more amount you save while buying raw material, the more profit you will earn. Remember to not make your products too pricey. There is a lot of competition in the market, so be two steps ahead of your competitors. Make sure your products are affordable for the consumer and also give you a good profit margin.
- Have a convenient payment strategy.
You must have easy payment methods so customers find your business venture convenient. Click here for direct debit for small companies. Direct debit service is cost-effective as it only has a 1% interest rate on transactions while credit and debit card payments have a 3 to 5% interest rate.
- Use the most cost-effective delivery choice.
Most small business owners do not think this part of their business through. Delivery charges are one of the reasons why customers shy away from shopping online. Imagine ordering a pair of earrings and the delivery cost is twice the amount of the earrings. Therefore, choose a convenient and cost-effective delivery option.