As a modern business, financial management is one of the most
important responsibilities that you must bear, whether you have the
sustainability of your business in your mind for your looking for a new
business partner. Just like an automobile needs fuel (or some
sort of power), a modern business needs finance. You can raise this
finance through a business loan, through an NBFC channel partner, or
by other means.
Although in every age doing business has required keeping a close eye
on the finances of the company or the enterprise, in a localized
economy, you could survive a financial setback, but not in a global
economy where, just as there are innumerable opportunities, there are
also innumerable competitors and challenges. You also need to show
your financial dependability if you plan to seek an SME loan or other
forms of small business loans. Hence, as a small business or a
medium-sized business, achieving financial stability is your number
Why financial stability is paramount for the success of your
Being financially stable basically means, you have the cash to run
your business. You need to pay salary to your employees. You need to
make payments to suppliers and service providers. You need money to
maintain your infrastructure. You also need money for exigencies. A
single unexpected expense shouldn’t bring your entire business down.
You should be able to get an instant
business loan or raise business funding through other means, as
long as you have the needed resources and connections.
Financial stability is also needed for growth. Only if you have
achieved financial stability at one stage, you can move to the next
stage. To hire new employees, to get new infrastructure, to get more
office space and sometimes even to buy new businesses, you need cash.
Many opportunities these days are available in the form of small
business loans and easy business loans and even SME loans in India.
Although you can go on increasing your debt, more debt means more
expenses and a more viable route is to achieve financial stability as
soon as possible and then think of growing further. Having said that,
even if you want to raise that, business loan is easily available to
financially stable businesses rather than unstable businesses.
How to become financially stable as a modern business for
getting a business loan and for sustainability?
Stability means being able to take care of the usual ups and downs of
your business without getting your boat rocked. Above all, if you want
to opt for small business loans at various junctures of your business
life, it is easier to get them if your business is financially stable.
Easy business loans and quick business loans will be instantly within
reach through financial stability. Listed below are 6 ways you can
make your modern business financially stable:
1. Never ignore your accounting and bookkeeping: Having a clear
grip over your finances means knowing exactly where your cash is going
to and where it is coming from. In the olden days, when there were no
computers and highly advanced bookkeeping software solutions and
mobile apps, not properly keeping your books could be excused, but not
now. These days you don’t even have to hire expensive accountants;
just subscribe to one of the cloud-based bookkeeping services and
you’re good to go. Even if you don’t want to use a SaaS-based
accounting service, there are many websites on the Internet that make
highly efficient accountants available on an hourly basis. Accurate
bookkeeping also helps you return your business loan.
2. Closely track your expenses: Expenses mean your cash is
going away and you should try your best never to spend more than you
are earning. If you’re not keeping a close watch on your expenses,
sometimes by the time you realize how much money you are spending,
it’s too late.
3. Automate as much as possible: The more manual work, the
greater is the expense. Technology these days enables you, as a modern
business, to automate many repeat tasks such as firing off email
campaigns, sending people follow up messages, using chatbots to
provide answers to people’s questions, backing up your data and even
using the “Internet of Things” technologies to enable your gadgets and
appliances to communicate to each other. This will also help to bring
down your operational costs.
4. Cut on travel costs: Allow your employees to travel only
when it is extremely necessary. These days it is very easy to make
life presentations to clients and customers through videoconferencing.
Even a tool like Zoom can help you cut travel costs by allowing
multiple employees and customers to come online and have interactive
sessions on regular basis.
5. Develop a culture of financial stability within your
organization: Taking care of your business finances is the
responsibility of every employee because, the finances of your
business have a direct impact on every employee. You can encourage
your employees to adopt good habits like efficiently using your office
resources, using less paper and stationery and switching off
appliances and gadgets when not in use. You can also save on insurance
and healthcare by helping your employees stay fit and adopt healthy lifestyles.
6. Be cautious of legal costs: Many businesses go underground
because they don’t take their legal costs seriously. Consult a lawyer
and draw a clearly defined business/corporate policy and make sure
every employee adheres to it whether it is dealing with financials,
data security, sexual harassment, accessibility or discrimination.
Gaining financial stability, whether you’re running a modern business
or a traditional business, doesn’t happen overnight. Strong desire to
make your business financially stable must be an integral part of your
business process that must involve your employees at all stages and
your business policies whether you implement those policies digitally
or through your human resource department.