It can be simple for banks and fintech companies to play a pivotal role in assisting their small business customers in setting themselves up for success, and there’s no better time to embark on this journey and put a solid financial foot forward than the start of the new year.
Sadly, too many entrepreneurs and solopreneurs neglect critical foundational steps that will help them first survive, and then thrive. It can seem complicated, but it doesn’t have to be.
The best time to start tracking expenses and set up a solid accounting system is when the business is launched. But if that doesn’t happen, it’s not the end of the world. The start of a new year is a great time to establish new processes and create good habits.
Like aspiring gym rats committing to a new exercise regimen in January, business owners are often thinking about what to do differently as they approach the new year. Many may lose ambition by March or April, but many others will persevere and see the fruits of their labor.
For small business owners, the key is to align their focus on the core infrastructure of business accounting and set that up well. After all, you can’t add a third level to a house until the foundation is solid. The possibilities are boundless if a small business’s financial infrastructure is built well.
Winter is a great time to focus on that infrastructure and organize finances. When a business needs to acquire outside capital, a solid infrastructure will be required.
Below are some aspects that I think a small business must get right — and that banks and fintechs can help their customers with — to survive in those early years.
The right banking: Entrepreneurs and solopreneurs too often start their businesses out of a personal bank account. Doing so leads to the commingling of funds, which makes tax preparation a headache. Others open a business checking account at the bank where they have their personal accounts, without considering the unique needs of a business and whether this is the best option. Establishing a banking relationship with a financial institution that understands how to serve small businesses benefits both parties.
The right payment system: A reliable and well-structured payment system is an absolute requirement for any business. Customers need to know what payment options they have and feel confident about the security of their information, and the business owner needs assurance that transactions will go smoothly. There are many ways a small business can receive payments from customers, and how those transactions are facilitated can be an opportunity for banking platforms and fintech apps.
A good invoicing system: An efficient invoicing system is a cornerstone of professionalism that gives any small business the appearance of financial stability. It also streamlines financial operations and simplifies recordkeeping. Many small businesses fail to establish a proper invoicing system, which can present customers with a poor impression of the business.
A clear understanding of the business’s cash flow: One of the most critical aspects of small business finances is having a clear understanding of cash flow. It’s the lifeblood of a business that gauges inflows and outflows of money, measuring pace and patterns. Yet few people who are new to business management understand this feature of good financial management.
Quick access to numbers: Managing finances should not require advanced mathematics, and having immediate access to accurate and relevant financial data is paramount to business success. Small business owners need to be able to quickly assess the financial health of their company without delving into complex calculations or sifting through piles of paperwork. Financial reporting needs to be in real-time and easy to access.
As I’ve said before, nurturing small businesses through their early stages and struggles benefits everyone. To thrive, they must first survive. With Hurdlr’s API, companies already serving small businesses can provide valuable support in establishing robust financial infrastructures.
With the long winter months ahead, there’s no better time to help small business owners realize how easily they can track their financial performance and ensure they have the right foundations in place for a prosperous year ahead — for everyone.
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Delivery jobs vary in their specific functions, but they all allow independent contractors like yourself to travel, create a flexible schedule, and deliver goods (as opposed to passengers). Jobs like Postmates give you the ability to work short gigs during times like your lunch break or at night, while others like Roadie allow you to use space in your car for somewhere you are already going to deliver a package.
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If you’re looking to help someone out and make some quick cash, then this section is for you. These companies function as automatic lead generators: instead of finding gigs by yourself, these companies give you the gigs. If you enjoy working with people and assisting them with their problems, many of the companies listed allow you to do just that.
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Rideshare Companies With Jobs Like Uber
As an independent contractor, driving for an on demand economy company gives you the ability make money with your extra time. Drive during your lunch break, at night, or during busy weekends – it’s up to you. However, these companies don’t only provide taxi-style services; companies like HopSkipDrive enable the driver to chauffeur kids to their activities around town, similar to a nanny. Other rideshare companies allow the individual to use their vehicle to make extra cash by renting it out or sharing a ride to work. If you have a car, then there’s an on demand economy opportunity out there for you.
Sites Like Airbnb
Make money off renting out your home, car, boat, tools, or almost anything with these sites like Airbnb. If you are out of town, make money while you are away. If you have free space in a home you live in, you can leverage that too. You can also choose specifically who you would like to rent to – say, a college sports fan. Check these hosting companies out below.
Delivery Jobs Like Postmates
Delivery jobs vary in their specific functions, but they all allow independent contractors like yourself to travel, create a flexible schedule, and deliver goods (as opposed to passengers). Jobs like Postmates give you the ability to work short gigs during times like your lunch break or at night, while others like Roadie allow you to use space in your car for somewhere you are already going to deliver a package.
Unskilled On Demand Jobs
If you’re looking to help someone out and make some quick cash, then this section is for you. These companies function as automatic lead generators: instead of finding gigs by yourself, these companies give you the gigs. If you enjoy working with people and assisting them with their problems, many of the companies listed allow you to do just that.
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Freelancing allows individuals to work wherever they want, whenever they want, with whoever they want. Freelance occupations range from bloggers, lawyers, chefs, stylits, caregivers, techies, and many more. If you like the freedom to travel and be your own boss, check out the companies below.