24 Apr How to Be a Smarter Small Business Owner
In uncertain times, it’s more vital than ever that you’re setting yourself apart from the pack. As a business owner in 2020, a more considered approach to every facet of your business could mean the difference between dominating in a bear market or becoming just another recession statistic.
Fortunately, you’ve got help. Small business owners of today have access to services, tools and advantages that entrepreneurs of recent decades could only dream of. With the right approach, a smart strategy and an awareness of what’s out there, nearly anyone can quickly build an efficient organisation, helping them to take the next step in their career – even now.
In this blog, Carbar looks at three things you can do today to become a smarter business owner, helping you stay more productive and focused on your customers.
Get a workspace worthy of your clients – without breaking the bank
Unless you’re very, very lucky, it’s likely that when you first start your business you won’t have the funds to afford a sprawling location with a kitchen, breakout spaces and meeting rooms galore. But with technology making it easier to do any number of careers from bookkeeper to store owner on your laptop from anywhere on Earth, why should you?
Structuring your business so that you can use the resources you already have can help to alleviate many of those creeping cash-flow issues that hound companies in their early days. Relying mostly on your residence as your business address – or selecting a virtual office as a forwarding address – can help minimise the amount you spend on rent, while giving you access to some convenient tax deductions. Think carefully about what you need to get started and ensure you’re making a financially prudent decision.
Keep track of every dollar you spend & save
As a small business owner, it’s likely that you’ll be putting some of your own money into your business, especially in the early stages. On top of that, you’ll be paying yourself out of your own revenue, so it’s vital that you keep a clear distinction between your money and the business’.
Fortunately, the proliferation of accounting software makes it easy to keep track of all money incoming and outgoing to and from your business. Numerous local and cloud-based suites such as Xero and MYOB allow you to track every dollar spent, saved and earned, giving you the data you need to make informed decisions about your business’ future.
Stop paying through the nose for your car
Whether you’re in real estate, delivery or accounting, you need a way to get to the next job. When most small business owners start out, they look for a work vehicle in the most obvious places – in the used car lot or through a leasing service. While they both offer different experiences, they’re bound together by two unfortunate facts: you’ll need to pay money upfront, and you’ll need to record it on your balance sheet.
Previously, businesses were allowed to exclude leased vehicles from their balance sheet, but with AASB 16 coming into effect for the 2019-2020 financial year, this has changed. Now, both purchased vehicles and leased vehicles need to be recorded and their costs of use recorded, potentially impacting your debt-to-income ratio and your ability to access capital. On top of that, they’re just plain expensive. Taking a loan out to purchase a vehicle or leasing one both involves some kind of deposit – often money you can’t afford when you’re just building your business.
Instead, consider whether car subscription is right for you. With no upfront costs, no requirement to record your vehicle on the balance sheet, and the freedom to start or stop whenever you want, Carbar is the simple choice for small business owners looking to get the most from every dollar.
Sign up today for a business account and discover how easy it could be to keep your company moving.
If you’re interested in learning more about how Carbar can keep your company moving, start a conversation about our Carbar for Business service.
Register your business today and join the Carbar revolution.