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Tag: small business

Financial Pitfalls That Small Businesses Fall Into

Running a business is tough, and this is especially true for start-ups which may not have started making a profit. Many run into financial challenges due to poor financial management including securing capital, having to borrow money, inability to separate personal from business finances and managing the use of money amongst other issues.

The result is that many businesses close shop after a very short time.   This is why business owners should take financial management classes to make sure that they can understand the financial aspects of the business. Engaging the services of the best tax accounting firm Toronto can also help manage your tax issues to avoid falling into trouble with the tax man.

Financial Pitfalls That Small Businesses Fall Into

So what do you need to consider when dealing with business finances.

Cash reserves

Starting a business requires capital and equity. However, in the initial stages of the business, you will find that more money goes out than in.  The business owner must reserve some cash to help tide him over during this period.

 Lack of forecast.

It is important that the business owner has a forecast of the money he will require to run the business in the initial stages, including rent servicing of debts, wages etc.   Without this, there will be haphazard spending that can seriously damage the financial capacity of the business. A proper business plan should highlight the expected expenses and how the business owner plans to take care of them.

 Unnecessary borrowing

The business owner must practice extreme discipline when it comes to borrowing money, so as to avoid overextending himself with debt which the start-up business may not be able to pay back.  Using a credit card to purchase equipment can be easy but remember that this is a debt you are incurring every time you run the card.  Ensure that you can pay back whatever you borrow within the loan period.  Not paying your debts will make your business credit ratings poor and will affect your future ability to get financing from lenders.

Uncontrolled spending.

It is important to know when to purchase things and only purchase what is absolutely necessary.   For example, going for high-end decor items or furniture for a new office does not make sense for a start-up.  You will be better off starting off small with an aim of growing bigger in the future.

Mixing business and personal finances.

 it is important that you keep the two separate, it may be tempting to dip into the business finances for personal uses with the promise to reimburse at a later date, which rarely happens. Have separate accounts for the business and personal finances.

Going it alone.

You cannot be a jack-of-all-trades. If financial management is not your area of expertise then it makes no sense for you to try and balance your books on your own. Get professional advice from financial experts, tax experts amongst others.

You have taken a step in the right direction by starting your own business. It would be a … READ MORE ...

Importance of Email Marketing to Small Businesses

If you have not integrated email marketing into your digital marketing strategy, then you are missing out on highly qualified leads and new customers.

Importance of Email Marketing to Small Businesses

Everyone has and uses email. The use of email as a means of communication is not age-restrictive, and the best bit is that it works for millennials too. There is also the fact that the average person has a limited attention span of about 8 seconds when it comes to processing information. Email captures attention in less than those 8 seconds, so, it is the marketing strategy you should leverage.

The other benefits include:

The promise of high returns

As long as your products or services offer the value that your audience is looking for, the use of email to share details of your new products, a sale, newsletter, or a blog update goes a long way in capturing attention of interested customers who will, most likely share the email or buy from you.

Reports reveal that one email has the potential of generating $38 – this translates to 3800 percent return on investment. There is also the fact that 20 percent of the leads that are sent directly to your sales database are qualified leads from email marketing. Therefore, not using email marketing to communicate with your audience, especially as big PST tax lawyer is a big mistake. With great content, email is a great way of nurturing and qualifying leads.

At the same time, the use of email is cheap in the content creation process, as well as the creation of LeadPages, lead magnets, and opt-in pages. This marketing strategy also faces fewer government restrictions and compliance procedures.

Email marketing is superior to social media marketing

Your marketing consultants have probably informed you of the important need for you to take your business into the social scene. Perhaps you already did and even got clients from the platforms. But, what if we told you that you could attract many more clients if you took the email marketing path too? Email marketing has been shown to be 40X more effective than Twitter and Facebook combined.

You Are More Likely to Reach the Right Audience

Marketing to the right audience within a niche is the most important part of marketing for small and big businesses. As a small business owner, you have a higher chance of reaching the right people with emails given the fact that people spend about 30 percent of their time at work and 50 percent at home, checking their emails. Also, people check their smartphones 80 times a day. With the right email marketing software, you will easily reach the right people. And since emails are highly personalized, they have a high open rate.

Reports by Marketing Sherpa indicate that 91 percent of adults in the US like promotional emails from the companies they interact with.

Easy to Track Metrics

The success of any marketing strategy relies on how well you track and adjust to your metrics. The email marketing KPIs … READ MORE ...