Use these tips to keep your business financially healthy.
1. Insight through overview
Make sure you keep track of your income and expenses. Schedule a regular time each week to do this. If you find this difficult, hire a bookkeeper or accountant to help you. You can also ask your contact at the municipality for help.
2. Use your records when you need to take decisions
Your business is yours. You are the owner and therefore responsible. That is why it is useful to understand what the figures mean. You will then have a better understanding of what is and is not financially feasible, and what choices you can make. Even if you have an accountant or an employee who does your bookkeeping for you, it is important that you understand the administration.
Watch the video 6 tips to increase your financial insight.
3. Big plans? Do research first
Do you want to invest or spend a large sum? Do some research before you take a decision. Do market research and take into account how your plan will influence your finances. Draw up a financial plan. Use your bookkeeper as a sounding board while making plans.
4. Build a financial buffer
Your financial position is never certain. A financial reserve or buffer helps you cope with financial adversity. For instance, a staff member who falls ill and who you have to continue to pay and replace, or a payment that comes much later than expected.
Talk to your bookkeeper about how high the financial buffer for your business should be. Make sure that you have some savings, and that you know where to go for money if you need it. For example, an additional loan from family or friends, or alternative financing. Take out against risks you cannot, or do not want, to pay for yourself. Use credit insurance to avoid the risk of non-paying customers. Or opt for factoring.
5. Increase your income
There are several ways to increase your income. These include:
- launching a new or improved product or service
- choosing a different revenue model
- changing your business management, organisation culture, and processes
- using subsidies
- taking a (part-time) job to ensure an income
6. Use online accountancy software
There are advantages to keeping your records online if you want to keep a grip on your finances. Online accountancy software works faster, and you do not have to re-enter everything by hand. That way, you avoid mistakes. Discuss your choice of software programme with your bookkeeper or accountant.
You can also use paper records, Excel sheets, or homemade accountancy software based on open source accountancy software. As long as you observe the .
7. Grow your business network
Your business needs to be visible to succeed. Get in touch with other entrepreneurs and build a business network by simply joining a business club. A network helps to increase brand awareness for your business, and you can exchange questions and information. You can also get information from (scroll down to 'Find your sector organisation'). They know what the rules and regulations are, and often offer advice to their members.
8. Get help in time
Being an entrepreneur means persevering, adjusting, and making choices. It is not always easy. Remember that you do not have to do everything on your own. Maybe the people around you are already helping you, but there are professionals you can turn to as well. KVK collaborates with many organisations and parties that strive to help entrepreneurs in the Netherlands. Find out what this professional network can do for you. You are not alone.
Questions? Call the KVK Advice Team
Do you have questions about the steps of this plan? Or do you want to discuss your next step with an expert? Pose your questions to the experienced KVK advisers. They can listen, think along, and refer you to a partner in the KVK network, if necessary. Call free: 088 585 22 22.