4 Strategies Business Owners Can Explore To Grow Their Business Finances

If you ask any finance professional the question, why don't small businesses grow? They'll probably tell you it's due to their lack of finances.

Many businesses have a good enough cash flow for steady growth, but are still not profitable. And some other small businesses have such bad cash flow that they are on the verge of bankruptcy.

Yes, many strategies claim to help you grow your small business's finances in a short period, but let's be honest; plenty are false. Beyond loans and grants, here are 4 growth strategies to help you increase your business's finances.

Separate Your Business Accounts From Your Personal Accounts

From the moment you start your business, set aside a separate account for it; this is a way for you to track growth and cash flow in your business.

In addition, it can also serve as proof for your business if you ever find yourself seeking a loan. For example, suppose a bank statement is requested to project your cash flow and determine your capability to payback.

Explore investment opportunities to double your money

Are you aware of the 50-30-20 money rule? This is a popular rule by US law professor Elizabeth Warren, in her bestselling book "All Your Worth: The Ultimate Lifetime Money Plan,"

In this book, she itemizes the following:

• 50% to needs
• 30% to wants
• 20% to savings

50% of your business's profits should go back into your business's operations. Such as paying for equipment, electricity bills, data costs, etc., 30% should go to paying yourself and your staff if you have any. Then the 20% should be saved but should not be left idle.

Remember, it's money; you multiply money with money. You have many investment options to explore, from real estate to cryptocurrencies, NFTs, etc.

It's up to you to research your preference; keep in mind that if you multiply your money, the higher your chances are to upscale.

Trade by barter with influencer marketing

It's the age of connecting with Instagram influencers and social media marketing, so leverage it. First, you offer them something (your product or service). Then, they offer you promotions via their social media channels to reach your potential customers or target audience.

And no, we are not saying you should reach out to high-end influencers you know would charge you a ton of money; give micro-influencers a try.

For example, if you sell clothes, you could reach out to fashion bloggers; send them some of your products, and ask that they tag you when they use them or request that they create video content around your product to share with their followers.

You should also develop creative ways to use their platforms to reach your target audience.

Most importantly, you have to ensure that you offer them value for what you request from them. In addition, you would have to be accountable to them since they are willing to work with you.

Find other financial incentives besides loans

To grow your business' finances, look for financial support that would not stress you.

Hundreds of business grants and empowerment schemes exist for business owners like you. So no matter how enticing taking a loan is, explore other options first for the sake of your business's needs. Many financial support sources, such as friends, family, etc.

Finally,

Business advice: Preparing a business budget and sticking to it would allow you to easily emulate the above money rule as you aim to upscale and multiply your business earnings.

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