September 27, 2020 0 Comments Financial Freedom

3 Financial Red Flags for Your Company

Does the thought of financial misfortunate worry you as a small business owner?

If you are not doing a good job of handling your company finances, you may see all you have worked for go by the wayside.

That said there are some financial red flags you should especially keep an eye out for.

So, are you ready to take any of them on you may be facing sooner than later?

Don’t Let All That Hard Work Go Down the Drain

In fighting to keep your business from going into peril anytime soon, here are three red flags to be wary of:

1. Not being good with handling money – The rather obvious gaffe one can make is not being a good handler of money. With that in mind, do you handle all the money decision for your company? While some want to do this, others delegate some financial decisions to others they trust. It is up to you to make sure you have people you can trust if delegating such things. Don’t let another person’s mistakes with money end up tanking your business at the end of the day. If handling all financial calls, bounce some ideas off a trusted fellow member or two of the company.

2. Not knowing when it is time to get help – Your pride may get in the way of you knowing when it is time to get some financial help. With that notion in your head, there are plenty of options on the table more times than not if you do your research. One to consider would be to seek a small business line of credit. If approved for it, the line of credit can be used for a variety of business needs. From buying equipment you need to the possibility of expanding, you have options. There is nothing wrong with seeking financial help for your company when it is in fact a necessity. It is better to ask for and get the help than stay quiet and get into a deeper financial hole. Shop around online to see which financial providers are best suited to help you out. From there, get it down to the one provider that you trust. That would be to deliver the credit you need for important items or other needs.

3. Not charging the right costs – Last, do you do a good job in pricing goods and services for your customers? You want to be good at this so you hopefully keep customers coming back again and again. Yes, this would be both old and new customers. If charging too much, some may go elsewhere for their buying needs. When this happens, you may never get the chance to service them again. Have a decent idea of what your competition charges many of the same customers you are fighting for. As an example, you run a small gas station/mini-mart and there is a direct competitor across the street. If charging $3.50 a gallon for unleaded and the competitor is charging $3, where do you think most will go to get gas? Be smart when it comes to pricing.

In looking out for red flags with your company finances, what concerns you most?