Startups and small- and medium-sized enterprises (SMEs) often face significant challenges in their finances, especially during their early stages of growth. Without the same access to capital, the same machinery, or the same networks, it can be hard for these businesses to find themselves on even footing with big companies and garner the competitive edge needed to make their mark in their home industries.
Fortunately, it’s now easier than ever for small businesses to mitigate their financial risks and ensure a smoother road to success. Here are nine smart financial moves your own Philippine-based SME or startup can make to truly cultivate your potential:
1) Choose the Right Banking Partner
SMEs and startups have very different business banking needs from larger, established businesses. Their smaller budgets, as well as their higher sensitivity to financial fluctuations, means that these businesses are usually better off with an institution that specializes in SME business banking. And because many startup and SME entrepreneurs are often on the go, they also need a banking partner with reliable online business banking services.
In the Philippines, Maya is now the go-to institution for small business banking online. Its business savings product Maya Business Deposit is designed from the ground up for small business banking, giving your SME or startup the free fund transfers and high interest rates you’ll need to maximize your growth.
2) Keep Your Accounting Up-to-Date
Outdated information can lead to gaps in your understanding of your business’s financial state. Make sure to hire qualified bookkeepers and accountants to manage your finances. Use your bank’s tools for business banking online to ensure maximum visibility over your startup or SME’s funding.
3) Be Comfortable Reading and Interpreting Financial Statements
While there’s nothing wrong with knowing only the basics of finance when you first become an entrepreneur, over time, you must be able to improve your understanding of what each balance sheet, income statement, and cash flow statement means for your business. Knowing how to read and interpret these documents will empower you with the insights necessary to actively shape the financial trajectory of your business.
4) Remember That Cash Flow is Life
Running out of cash is a common reason many small businesses fail. Monitor your cash flow regularly, project your future cash needs, and implement the necessary strategies to maintain a healthy cash position. This might include negotiating better payment terms with suppliers or boosting your sales efforts. Another way you can boost your cash flow is by investing in payment solutions like Maya Terminal and Maya Checkout that allow your business to accept a wider range of payment types and, in turn, bolster your cash flow.
5) Borrow with Caution
While borrowing can fuel growth, excessive debt can quickly destroy a business before it even has a chance to succeed. Borrow only when necessary and ensure that you have a clear plan for repaying the debt. If you need to secure extra funding at short notice, choose lower-risk credit lines like Maya Flexi Loan.
6) Be Proactive about Potential Threats and Opportunities
The biggest advantage startups and SMEs have over their larger competitors is their ability to quickly pivot to avoid threats and take advantage of new opportunities. Make use of this agility whenever you need to quickly change your financial strategies to stay aligned with your business goals amid changing market landscapes.
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7) Prioritize Profitable Activities
In the early stages of your business, focus on activities that contribute the most to your bottom line. Scale back on less profitable revenue streams. This strategy will help you allocate resources more efficiently and allow your business to gradually develop a competitive advantage in a specific area, which will in turn lead to more efficient operations and a healthier cash flow.
8) Consider Savings as Earnings
Treat savings as a vital part of your financial strategy. Cut unnecessary costs, negotiate better deals with suppliers, and find ways to optimize your operations. Every peso saved is an additional peso that contributes to your profits. By choosing Maya Business as your payment pertner, you can enjoy savings through a merchant discount rate (MDR) of 1% on all QR Ph payments, as well as free fund transfers with Maya Business Deposit.
9) Always Stay on Top of Your Obligations
Failing to pay your employees, suppliers, or the Bureau of Internal Revenue (BIR) will harm your bottom line and reputation, resulting in a premature end to your business. To ensure critical payments are not overlooked, set up systems to ensure timely disbursements. If you have a Maya Business account, you can use Maya Disbursements to ensure all your obligations are paid on time.
Maya is the Smart Financial Choice for Startups and SMEs
Maya offers the kind of business banking Philippines startups and SMEs need to manage their growth through their early years. The Maya Business Deposit savings product gives you an interest rate of 2.5% per annum, free transfers via PesoNet and InstaPay, and zero maintaining balance, making it easier to save up for your next stage of growth. Create a Maya Business account today to enjoy Maya Business Deposit and Maya’s other leading small business finance and payment solutions.
Getting a Maya Business account also qualifies you to unlock the perks of the Maya Business 1-2-3 Grow bundle. The Maya 1-2-3 Grow bundle lets you enjoy even more savings by giving you a 1% merchant discount rate (MDR) on QR Ph sales for 3 months after signing up. This means you’ll get PHP 14,600 in transaction fee savings for every PHP 1 million in QR Ph sales. You’ll also earn a generous 2.5% p.a. on your Maya Business Deposit account, allowing you to enjoy more savings for your business.And that’s not all. The Maya 1-2-3 Grow bundle also entitles you to a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just three months from signing, giving you the funds you need to cover up any operational shortfalls. Sign up for Maya Business today to get a Maya Business Deposit account, take the Maya 1-2-3 bundle, and enjoy other popular Maya Business solutions for small businesses.
