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How Founders Can Prioritizing Their Spending to Maximize Business Growth

Posted by Hiten Parmar to Budgeting, Startup Tips

Founder of Amazon, Jeff Bezos, says, “We cannot be in survival mode. We have to be in growth mode.” Any business must be growing to survive and flourish, especially in its initial years. No matter how compelling your mission statement is, as a business, you have one prime purpose: Making money.


In every possible scenario, you need to spend at least some money to make money. Most business ventures fail soon after launch or midway, when they have flaws in their strategies, so making the right decisions about what your business prioritizes and invests in is the most crucial part of being a founder or CEO.


Unfortunately, you see thousands of admirable of businesses and entrepreneurs who waste initial capital or seed funding by plunging money in some business functions while underinvesting in the initiatives that would’ve moved the needle. The primary cause of businesses to flounder is improper or maverick investment strategies.


Here we look at proven and workable means on how to invest your capital for maximum business growth.

 

Yes, it is Possible to Grow a Large Startup Team in a Coworking Space

Posted by Andrew Broadbent to Budgeting, Startup Tips

When people think of coworking spaces, the image that comes to mind may include solopreneurs and freelancers working amongst each other in an open space layout, but, the fact is, startup teams and even major Fortune 500 businesses are also thriving in shared work environments.

 

The commercial office space as we know it is transforming into a new, more collaborative workspace design and now many growing businesses and even enterprise corporations are fueling the demand of the coworking trend. Let’s dive into some of the value that innovative startups get from working out of shared workspaces.

8 Budgeting Tips for Surviving Seasonal Business Ups & Downs

Posted by Melissa Hollis to Accounting, Business Advice, Business, Budgeting

 

Seasonality is a common experience many businesses face when they’re building out their budget. There are obvious examples in the form of tanning salons and ice cream shops to tax firms and event space venues, but even a digital agency or SaaS startup can experience high and low points in cash flow throughout the year.


Here’s a few tips on how your business can plan for seasonal slumps and take advantage when business is booming.

Taking Out a Business Loan? Don't Forget These 6 Steps [To Do List]

Posted by Matt Lenhard to Budgeting, Loans, Startup Tips

After I signed on the dotted line, the real work began. The funds from my business loan were sitting in LendEDU’s bank account, and we finally had the capital we needed ahead of the busiest time of the year.


Getting your small business loan funded is an exciting time for an entrepreneur. While you want to take time to celebrate, you also know that you need to get down to work and use that money to grow your business.


Locking down the money is, after all, only half the battle. You also want to make sure you have everything in place to spend it right and be in a position to repay the loan responsibly so that you can build good business credit and set yourself up for future borrowing success.

 

Your Small Business Can Afford to Offer Retirement Plans—Here’s How

Posted by Damian Davila to Investment, Business Advice, Budgeting, Startup Tips

In the past, many small business owners have thought that providing a 401(k) plan wasn’t realistic for their employees. Perhaps they felt they were too small, that the plans were too expensive, or that the administrative burden was just too high.


Luckily, this is no longer the case, and not only is it possible—and affordable—for companies of any size to start providing a savings plan, but getting an early start is also advantageous from a tax-saving perspective


Consider this:

  • A recent Glassdoor employment confidence survey found that 31% of workers value a 401(k), retirement plan, and/or pension over more than a pay raise.
  • Approximately two-thirds of workers not saving for retirement say they would be likely to save for retirement if their employer used automatic paycheck deductions at either 3% or 6% of salary.
  • In 2018, workers can make tax-deductible contributions of up to $18,500 to a 401(k).

The other good news is that in this tight job market, offering a workplace retirement plan is a great way to make your business stand out from the competition. However, it’s not just employees who can draw huge benefits: as it turns out, employers can also reap some incredible tax credits and deductions for providing a 401(k).

What Do Different Industries Spend on Marketing?

Posted by Tim Brown to Accounting, Business Advice, Budgeting, Startup Tips

There’s lots of advice out there about what companies should spend on marketing. Most commentators claim businesses should spend around 6-12% of their revenue on marketing, but it’s important to remember that’s when they’re speaking to a wider audience. If you’re trying to decide how much you should spend to generate revenue for your business, there is a lot more information you should consider.


One of the biggest factors you need to account for when setting your company’s marketing budget is your industry. Take a consumer goods company for instance. In today’s competitive digital landscape, they could spend 12% of their revenue on online advertising alone. That’s going to look much different than a transportation company who is likely to spend much less than 6% because so much of their business depends on existing relationships and campaigns.


So let’s start by taking a look at how much money marketing teams have to play with based on their industry.

5 Small Business Trends to Work Into Your 2018 Plans

Posted by Meredith Wood to Accounting, Business Advice, Business, Funding, Budgeting, Startup Tips

Small businesses must transform themselves to keep up with ever-changing technologies moving the world forward. It’s vital to their success in a competitive business landscape, and it’s also crucial to the success of the greater economy. According to the Small Business Administration, small businesses accounted for 63% of net new jobs from 1993 to 2013.


With that said, small companies can get a step ahead of the game by budgeting to take advantage of changes in their industries. Here are five small business trends that will make a splash in 2018.

3 Financial Metrics I Use to Run My Marketing Agency

Posted by Chris Hickman to Accounting, Business Advice, Budgeting, Startup Tips

No successful marketer decides to start their own agency because they love accounting. Not even the most passionate digital marketers who love getting deep into the data, like I did when I started Adficient.

What Your Budget Says About Your Business’s Priorities

Posted by Melissa Hollis to Business Advice, Budgeting, Startup Tips

When it comes to conveying what your company is passionate about, many business owners start by putting pen to paper and writing out their mission statement. Obviously, this is important. As a brand, a mission statement allows you to own your organization’s public-facing story. But aside from what you write about your commitment to your community, there’s another way you can demonstrate what your company stands for and how you plan on changing the world: Your budget.


The way you spend your business’s capital represents not just what your team values, but what you value as a leader. You want to build a budget that paints an accurate picture of how you prioritize each part of your business.

Ways to Keep a Positive Cashflow Running for Your Startup

Posted by Niraj Ranjan Rout to Accounting, Business Advice, Budgeting, Startup Tips

For a startup to survive and succeed, it needs to manage cash flow with utmost care and skill. Founders and business owners often find it challenging to maintain a steady handle on their burn rate, and this has become a common reason for many startup failures.

Even if you’ve reached profitability or raised a significant amount of capital, you can still fall short if you don’t manage to meet your overhead, payroll, and other operating expenses that keep your business afloat.

Success starts when you take charge of your finances.

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