Despite the challenging times that many small businesses operating through the pandemic faced, there are definite opportunities to get back on track and grow this year. Whether your business is a start-up looking to take those first steps, or an established small business looking to make big things happen, here are some key moves to set you up for success.
1. Get a handle on expenses
Business expenses in general increased over the pandemic, with 92% of small business owners saying their costs increased in 2021. So how can small businesses looking to grow make sure they keep a handle on expenses?
Firstly, keeping business expenses separate from your personal expenses is crucial. In addition to making it easier to build your business credit score and obtain tax relief, it’s much more straightforward to track business spend if it’s not tied in with personal expenses. And tracking your business expenses is a must. If you’re not tracking expenses, you won’t know where your money is going.
Even if you have some type of tracking method, is it efficient? Expense tracking is the key to keeping your small business financially healthy, so make sure your tracking methods are smart, measurable, and accurate. A Capital on Tap Business Credit Card makes tracking and managing business expenses easy, saving you time and energy.
Using Business Cards for certain fixed expenses
While you might see business credit cards as an option mainly for ad-hoc payments, they can also be used to pay and track fixed expenses, too.
Other ways of better managing your expenses include checking with your providers and suppliers to see if you’re getting the best rates, and focusing on budgeting and forecasting so you can plan business spending and avoid any nasty surprises.
Getting a handle on your expenses is not only helpful for cost efficiency and better cash flow management, it makes your year-end tax preparation easier as well, since your expenses will be tracked and organized in one place.
2. Empower your employees
The pandemic was mentally and financially taxing for many people. As small businesses generally rely on their employees to succeed and grow, it’s important to look after them wherever you can.
By striving to make your employees feel engaged and appreciated, your business will see multiple benefits. For example, high levels of employee engagement can lead to greater performance, productivity, and profitability.
But you want to go one step further than simply ‘satisfied’ employees. For more productivity, loyalty, and engagement, demonstrating to your employees that you trust and respect them is the way forward. Empowering employees can be a great way to maintain morale in a world of uncertainty and strengthen your small business.
An easy and cost-effective way to do this is to empower your employees with a business credit card that's easily trackable and controllable. And it’s a win-win situation. Your employees don’t have to pay out of their own pocket and go through the process of requesting reimbursement for expenses, and you’re able to better control costs and budget.
3. Build business credit
Building business credit is a valuable strategy that helps small businesses to grow both in the short and long-term. Many of the strategies you can use to grow your business credit, such as opening credit accounts with suppliers and using a business credit card, give you immediate access to the goods and services you need.
Nearly all businesses aiming for growth require some form of financing to do so, and the better your business credit, the more options for funding you’ll have. The rates you’ll be offered will also be more favorable.
Seize New Opportunities
Imagine being confronted with a fantastic, once-in-a-lifetime opportunity for your business but not having the funds (or the ability to get financing) to access it. That’s why starting to build your business credit as early as possible, even if you don’t think you’ll need to access credit any time soon, is highly recommended for growing your small business.
Avoid Hard Credit Inquiries
Furthermore, it’s important to keep your credit rating as strong as possible, avoiding and removing hard inquiries where you can. Normally, if you apply for a line of credit, it often leaves an impression that can impact your business credit score. Fortunately that is not the case with the Capital on Tap Business Credit Card.
When you apply for the Capital on Tap Business Credit Card there is no hard inquiry and it doesn’t impact your business credit score to apply.
Learn the benefits of a the Capital on Tap Business Credit Card, and your small business could be on the path for great success and growth.