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If you started running your own business after completing your military service, you probably expected that you would run into obstacles along the way. But in today’s inflationary economic environment, you might be worried about your company’s future. If you’re concerned about your ability to deal with these rising costs, you can turn to CAN for expert financial planning advice. Furthermore, these tips will help you keep your business thriving in spite of inflation.
Use Accounting Software
Now more than ever, it’s important to avoid bookkeeping mistakes in your business. If you want to eliminate accounting and invoicing errors, you need comprehensive accounting software! As an added bonus, you don’t necessarily need to pay for this software, either - instead, you can find a free version of your preferred accounting system. You won’t have to pay a monthly subscription fee, and the free software will still come with lots of helpful, automating functions, like invoicing and tax deduction tracking.
If you’ve been spending lots on marketing, this is the perfect time to cut back - there are plenty of frugal marketing techniques that will still help you draw in customers. For instance, if you want to create high-quality images of your products, try an image background remover. By removing the backgrounds from product photos, you’ll be able to draw your customers’ eyes directly to your items. You can even pair edited images with brand new backgrounds, designs, and aesthetic environments.
Maintain Cash Reserves
Maintaining cash reserves that you can draw on during emergencies is key. But as a business owner, you might be hesitant to keep too much in cash - after all, what if you could invest that money in new equipment, new hires, or new company initiatives? Keep in mind that having peace of mind during a financial emergency is priceless. Bake recommends keeping about six months’ worth of operating expenses in reserve. However, how much you want to keep may depend on your business’s unique needs.
Reduce Your Overhead
Cutting down on your operating expenses is one of the simplest ways to avoid the cost increases that come with inflation. Take a look at your budget. Where could you reduce your spending? Which expenses are fixed, and which can be negotiated? And which expenses could you eliminate entirely without sacrificing your company’s performance or your quality of service? To shrink your overhead costs, Next Insurance recommends going paperless, using less fuel if you manage a fleet, or negotiating your lease with your landlord. You could even consider making major changes, like shifting from working in an office to operating entirely remotely.
Finally, don’t hesitate to seek out help if you need it. As a veteran, you may be eligible for a wide variety of grants and loans. It’s worth researching financial assistance programs for veteran business owners in your area to see if you qualify. You never know what you might find!
What if you’re struggling with complex financial problems that you haven’t been able to solve on your own? You could also work with a financial advisor who specializes in helping veterans. Get in touch with other veteran business owners in your city, and ask if they could refer you to advisors they’ve worked with. A financial advisor will be able to give you advice that can help you navigate these challenging times.
Running your business when inflation continues to increase isn’t easy. But at some point, every entrepreneur will face tough times. With these tips, you can keep your business up and running, even during periods of economic turmoil and uncertainty.
Are you looking for financial guidance as a veteran? Coordinated Assistance Network can help you manage your finances after your service. Visit our website today to enroll in our program.
By: Jenna Sherman
Coordinated Assistance Network is proud to present The Momentum to Modernize Grant (M2M) M2M is intended to provide technology that produces transformational resources for nonprofit infrastructure, efforts to scale, and implementation support. CAN is granting 75 in-kind grants to organizations for “Black Level” CAN portal licensure. Click here to learn more about M2M.