Tips for Managing Small Business Finances Part 2: Invest in Growth

Love it or loathe it, managing your small business finances is an essential responsibility of any small business owner. And doing so successfully is key to sustaining and growing your business operation. 

We’ll be the first to admit that it can be easy – and quite frankly tempting, especially if you’re a numbers guru – to overly complicate your company’s financial management. But it doesn’t have to be. 

Your job as a business leader is to educate yourself on fundamental financial tasks like simple accounting and understanding how to draft financial statements – as well as prioritize organization. 

With basic know-how plus sound financial organization, your accountant can then focus on the details so you can stay focused on the strategic future of your business development. 

In Part 1 of our Tips for Managing Small Business Finances, we discussed the importance of paying yourself. Now let’s dive into a second area of priority.

Tip #2: Invest in Growth

Just as keeping your personal finances stable by paying yourself is an important pillar of your financial management strategy, so too is dedicating money for growth opportunities. 

By keeping one eye on today’s balance sheet while focusing the other on the future, your business will be well positioned to grow in a financially strong direction.

Admittedly, investing in the future means taking a risk, but it should be a calculated risk based on the goals and values of your business. 

Consider what tools or technology your team needs to innovate and invest in that. Think through how you can elevate your customer service or add more value to your employees and then dedicate dollars to it. Reinvesting in your business and employees is almost always a smart financial decision.

By carefully evaluating all the ways in which you can add value, grow and innovate through a financial investment and then committing to do so means a greater likelihood of that investment paying off.