3 Tips for Startups to Achieve Financial Success

Guest post by Courteney Reed, Financial Industry Analyst at Credit Card Insider

Successfully growing a business is no small feat. It takes a great team, determination, and often a decent helping of luck. With so many things to contemplate, it is often hard to find a place to start seriously investing in your startup’s growth. Here are three suggestions:  

Separate your business and personal finances

As a business owner, you need to apply for an employer identification number (EIN) via the IRS website. This allows your business to build a credit profile and maintain a record of business transactions. Until you file your business as a separate legal entity, you could be held personally liable for all financial activities.

The sooner you establish your credit profile the sooner your business begins to build credit. Opening a business credit card and using it responsibly can help you track your expenses and profits, build your credit scores, and simplify tax filings. Conversely, mixing business and personal expenses on a personal credit card can quickly eat up your credit limit, causing a drop in credit scores and making it harder to apply for personal credit, such as car loans or mortgages.  

Consider these advantages of using a business credit card:

  • Separation of business and personal expenses
  • Higher credit limits than personal cards
  • Rewards like cash back, miles, points, and warranties
  • Potential to increase business credit scores for better business loan terms and high-tier business credit card rewards
  • Better cash flow management, allowing 20-30 days to pay business costs without interest

Finance To Fit Your Needs

Successful businesses often use outside funding to plan ahead for their business needs. Here are three tried and true options worth considering:

Small Business Loans

Small business loans provide access to capital before revenue streams begin flowing. Plus, by successfully managing a business loan, you’re increasing the potential of securing bigger business financing when it’s time to expand your company. Finding the right business loan may take time but you’ll have working capital you need to get off the ground.

Venture Capital Funding

Financing investors provide funding to startup companies that are believed to have long-term growth potential. This type of funding usually comes from wealthy investors, investment banks, and other investment companies, and ownership of a business is divided between the investors and the proprietors of the business. There are different platforms that provide a database of different investors looking to invest in new companies or promising business ideas, making it easier to find investors interested in your market niche.

Alternative Lenders

Alternative business funding is capital offered to small business owners by “non-bank” providers. Alternative lenders are particularly attractive to small business owners who don’t have an established business credit profile. 

Most lenders have their applications available online, making the approval a quick process. Their interest rates are typically higher, but if you need money in a timely manner, alternative lending might be the way to go. Typically lenders extend loan repayments from 6 months to a year, but depending on the type of loan you choose, you may not have to pay the money back until you actually draw from the provided funds.  

Leverage Software to Increase Efficiency and Reduce Costs

After getting approved for more financing, you’ll need to stay on top of all the financial details. The right software can help streamline multiple tasks and increase your team’s performance and overall efficiency. Here are three tools for keeping your finances in order:  

Effortless HR

Payroll management is often a burdensome task, especially as your business grows in manpower. Effortless HR is an HR tool that enables employees to self-manage their payroll preferences, time off, and access any other necessary information without the assistance of an HR employee.

Quickbooks for Finances

Quickbooks is simple to use and helps you keep track of all basic business transactions. Plus, they regularly roll out updates to their online platform for flexible financial management.

Dropbox

A cloud storage solution is a must-have for organizing and sharing important files. Depending on your specific needs, Dropbox contains tools that benefit secure record keeping and flexible collaboration.

Conclusion

The path to growing a successful business is not a concrete one. However, these three tips can begin to increase your financial literacy and day to day expense management in a simpler and more productive way. Seriously considering these recommendations will give your business a better chance of success and expansion in the future.

Connecting Tools for Efficiency: 3 Things You Need to Do Now

Guest post by Tara Witterholt, Chief of Staff at Elevation Solutions.  

Email, chats, video conferences, document sharing, CRMs, phone bridges—we have no shortage of tools to power our businesses. We have unlimited options for tracking work, collaborating on documents, and managing our workload. The difficulty starts when all these items are kept in disparate places, usually the place most convenient for the person who started the communications, document, or activity. The risk is people giving up on broken systems, starting yet another system for tracking or collaborating, and the time-sucking cycle repeating all over.

Our management and technology consulting firm is engaged regularly to implement software that solves productivity problems. It’s our bread and butter. However, we prefer to come in before you implement the next great productivity tool. We work to understand operational pain points and the humans around the table before we move into the cloud.

Below are some key steps you can take to figure out what productivity tools you actually need and how to maximize the ones you keep. 

1. Inventory all the tools you’re using now, including anything used for document creation and storage, workflow and project management, scheduling and invoicing, etc. Then, get real… 

Organizations large and small are lured in by tools that look fun, shiny and new. They promise to increase our productivity, make us more effective, do our laundry, and cook us dinner. And they rarely deliver. You need to examine the tools you are using and ask yourself if they’re solving the problem that drove you to adoption.

I once had a client ask me to implement a productivity tool that had a Google Drive connector, a calendar (separate from their Outlook or Google calendar), and a task assignment feature. It could be branded to their company, shared easily with their teams, and adopted at a low cost. They were beaming at the possibility of having more time for strategic work. 

They wanted to tackle the fact that projects weren’t getting done on time and they didn’t have visibility into what work people were doing. It turns out they didn’t have standard expectations for project delivery and relatively few consequences when deadlines came and went with no results. The cloud-based solution had rave reviews, but it didn’t solve their root problem: accountability. In the end, I helped them create a better system of accountability rather than throwing new software at the problem. This included agreements on deadlines, progress updates, and what happens when people don’t get their work done. The executives were happy with the increased insight and their teams were more willing to communicate progress with the new, clearer expectations.  

2. Agree as a team what you will use for project management, internal and client-facing communications, and document creation and storage, then get rid of everything else.

And stick to it! No going rogue. Agree that you won’t suggest a new or replacement tool until you all have had a chance to talk about these key things: who will use it, what the benefits are, and what problem you are trying to solve.

We recently did this with our project management tools. We had 3 different ways to track projects and what we used differed by the client. At a strategy session (in the mountains, because, hey, it’s Colorado) we committed to using Trello to track progress on our implementation projects. We can assign tasks and provide access to internal and external users. Clients can see exactly what work is happening in real-time, as well as where we need their input.  Now, when we have questions about status and progress, we have one source of truth. It’s been a game-changer.

3. When you figure out which tools to keep, make sure they talk to each other.

Just like you encourage your team to collaborate, ensure your productivity tools are talking to each other! Our team has recently implemented an email connector that works with our Salesforce instance. We can set up meetings easily by sending suggested appointment times from our Google calendar, and the recipient can choose what works for them. We have also connected our project management tool to Google Drive, Slack, and our billing and project time-tracking software. When needed, our productivity tools enter information automatically into Salesforce. No more searching and wondering—it’s all in one place.

The above suggestions take time to work through. You have to get the team together, ask tough questions, and find out what people are really using and how it’s working, including what’s most effective for your clients. But rest assured, the amount of time you will get back when you finish these steps is worth it. And if you do decide to try something new, we can help you implement what you truly need with style!

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Tara Witterholt is Chief of Staff with Elevation Solutions, a rapidly growing management and IT consulting firm with clients and employees in every time zone. With over 15 years of project management experience, Tara works tirelessly to streamline processes and help people focus and be productive. She lives in Denver, Colorado, has a college-aged daughter, a cyclist husband and a very lazy but adorable cat. 

Check out their Business Impact Story to learn how Elevation Solutions leverages Earth Class Mail to streamline their back office.