According to research published by e-commerce giant Shopify, a third of small businesses that fail in their first year do so because of cash shortages. Additionally, most of the business owners surveyed by Shopify reported spending more than twice as much in their first year than they had initially planned. Clearly, cash management continues to be a major challenge for many of today’s small businesses, but the good news is that more proactive financial planning can help you navigate and mitigate these challenges effectively.
There are many ways to get around cash issues, but they often boil down to three things: borrowing, earning more, and saving more. Of these options, building savings is often underemphasized but it is, nevertheless, a crucial part of sustainable financial management. To boost your business's savings and secure its long-term growth, consider implementing these seven time-tested strategies:
1) Choose a Better Business Banking Partner
The savings product you use for business banking online can have a major influence on how fast you can grow your funds. Fortunately for entrepreneurs, better small business banking solutions are coming up all the time. Picking the right one can be a boon for your business, boosting its savings’ value through interest while also offering it better financial flexibility.
For solutions for small business banking online that suit the needs of businesses in the Philippines, be sure to check out business banking products and services from Maya Business. Over the years, Maya Business has developed a solid reputation as an innovative provider of (SME) business banking solutions, and recently, it has gained more attention with its groundbreaking Maya Business Deposit product. With its unmatched convenience and industry-leading interest rate of 2.5% per year, this savings product has transformed online business banking for thousands of Philippine-based entrepreneurs.
2) Get to Know the Tools Available to You
Not only is production equipment more accessible than ever before, but you can also access a wealth of free online tools for everything from creating websites to running lead-generation campaigns. Moreover, many technology subscriptions now come with an array of complementary services that often do away with the need to purchase new technology.
Unfortunately, small businesses often neglect to take stock of the tools they already have access to, resulting in funds being wasted to deliver what are essentially duplicate capabilities. You can prevent superfluous technology investments by being more deliberate with your purchases and doing periodic audits of your current equipment, software, and subscriptions. Most importantly, try to avoid getting on new tech bandwagons early in your business’s life to prevent exposing it to unnecessary financial risk.
3) Hire an Accountant
Tracking your business’s finances is an important step in identifying potential savings. However, learning how to do this properly takes time that could be spent growing your business. If you don’t already have bookkeeping and accounting skills, you will save more money in the long run by hiring someone who can do the job rather than blundering through it yourself.
4) Outsource Non-Core Roles and Activities
For maximum savings, important roles that are not directly linked to your business’s mission, vision, or value proposition should be outsourced. Roles such as facilities management, customer service, and administration are just some of the many that are now routinely being filled by contractors rather than in-house employees.
When done correctly, outsourcing non-core functions to thoroughly vetted external specialists can reduce your labor costs while simultaneously enhancing the quality of your outputs. This can free up more funds to expand your business or hire individuals for roles that directly impact your business's mission.
5) Automate Your Processes
If you can automate a process without degrading the quality of its outputs, it’s probably a good idea. Effective automation saves your business time and reduces the risk of errors associated with manual tasks, ultimately saving your business money as well.
Data entry is, perhaps, the activity you should focus on automating at the outset, as the process is often laborious and takes time away from value-generating activities. However, automation can be applied to many other aspects of your business, from email marketing and customer relationship management to inventory management and financial reporting.
6) Integrate Energy-Saving Technologies and Practices
As fossil fuel prices continue to climb, businesses need to become more wary of their energy waste and consumption. While the use of newer energy-saving technologies like inverter air-conditioners and LED lights is important, you should also consider practices that reduce on-site energy consumption, like offering remote work opportunities to deserving employees, as well as conducting regular energy audits to pinpoint areas of inefficiency and implement energy-saving measures for cost-effective sustainability.
7) Re-Examine Supplier and Vendor Commitments
If you’re happy with a vendor or supplier’s products or services, consider negotiating for lower prices in exchange for an extended commitment. Many B2B businesses will be happy to offer better prices for longer-term contracts or higher-volume purchases, as more substantial commitments help ensure continuity.
On the other hand, if you’re not happy with the prices or quality you’re getting from a provider, it probably makes little business or financial sense to stick with them. Try to shop around for better alternatives before ending your relationship and moving on to a better solution.
Build Your Savings Faster with Your Maya Business Deposit Account
For online business banking, Philippines’ startups and SMEs are now, more than ever, choosing to open a Maya Business Deposit account. With its amazing 2.5% per annum interest rate, your business can boost its savings up to four times faster compared other banks’ deposit products. Create your Maya Business Manager account to open your own Maya Business Deposit account. Start enjoying better interest rates, quick transfers, and no minimum balances with Maya Business.
After your Maya Business Manager account has been approved, you’ll enjoy the benefits of the Maya 1-2-3 Grow bundle. Maya 1-2-3 Grow gives you a 1% MDR (merchant discount rate) on all QR Ph transactions for 3 months after signing. This means you’ll enjoy PHP 14,600 in savings for every PHP 1 million in QR Ph sales, giving you more cash to further develop your business’s competitive edge.
You can also take advantage of the benefits of using Maya Business Deposit account as your settlement account as part of the bundle. Its best-in-class 2.5% p.a. interest rate gives you an amazing PHP 25,000 in interest income per year on a PHP 1 million deposit. Furthermore, the Maya 1-2-3 Grow promo also qualifies you for a Maya Flexi Loan offer of up to PHP 2 million in just 3 months, giving you limitless options for securing your emerging business’s growth and stability.
Create your Maya Business Manager account today for boosted savings with Maya Business Deposit and unique growth opportunities like Maya 1-2-3 Grow.
