A new year can certainly be a good time to reflect upon the health of your business and find new ways to help growth. Now is an excellent way to make those changes you’ve been planning but always putting off.
Here are a few ways that SME India can imbibe some good habits this year and grow its business even more.
#1 Quality over quantity (in terms of workforce)
In start-ups, quality beats quantity any day. Hire the right talent, and you will spend less time hand holding or teaching your employees what needs to be done. The right people work towards the business’ goals and look at their job as a way to grow, and help the business grow too. The right talent develops into a successful relationship between the employee and the business owner, and has a positive impact on the business environment. The wrong talent, however, can cost you a lot, in terms of time, money and effort.
#2 Improve personal credit scores
Your business and you might have separate credit ratings, but you are, at the end of the day, your business, and your personal credit score does impact your business.An improved credit score means an improved chance of getting business funding. Yes, we understand that it will not happen overnight, but there are a few ways to start working towards improving your credit scores. Keep an eye on your credit card use. Pay your complete outstanding every month, and on time. Spill-over balances reflect badly on your score. In fact, make sure you pay all your bills on time. Don’t close old credit cards or remove old debts from your report. Those create a long credit history. Don’t over-borrow, and try and clear payments at the earliest, without pre-paying.
#3 Improve financial record-keeping skills
Well-maintained financial records are a blessing, not just for the business owner, but also for a third party considering business funding for the start-up. Messy financial records means the business owner isn’t able to take correct, informed decisions. And that in turn hampers the effectiveness of the business, stunting its growth. Begin fresh, and put in place the right financial management system. You could even hire an expert to help you. It might seem like an expense, but compare that to the effort and time it frees you up from.
#4 Pay taxes at the right time
You don’t need us to tell you that. Paying taxes on time saves you penalties. Also, getting an extension on your date doesn’t mean you delay paying the entire amount. Pay as much as you can, since fines and interest starts getting charged from the very next day. And is compounded on a daily basis. Planning in advance and paying taxes on time will save you a lot of last-minute panic and stressful days. Hire an accountant to help you stay on top of your taxes from this year.
#5 Refinance to reduce debt payments
Have you considered refinancing to reduce any of your outstanding debts?When you refinance, you can negotiate lower interest rates or change the payment schedule or terms of your existing debt. You can take advantage of a sudden influx of money or lower market rates to reduce your debt burden.
Pledge to implement some of these resolutions and give your business the growth spurt it needs.