6 ways to be more financially stable as a modern business

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 one priority.


Why financial stability is paramount for the success of your modern business?

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.

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