3 Reasons to Start a Small Business During Tough Economic Times

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22 Sep 2020

3 Reasons to Start a Small Business During Tough Economic Times

When the economy takes a downturn, or when the market is volatile, a person looking to start a business may think that all hope is lost for their idea. At least until the economy starts to pick back up again. However, economic hardship has proven to be a great time to start a new small business. Other businesses are looking for ways to revise their budgets and develop new business plans to accommodate the changes in the economy. You can start your new business a step ahead with some recession savvy tools and tricks. Learn how to make the most of an economic downturn and get your new small business started on the path to success.  

1.  New Market

When the economy is trending downward, new problems arise. Your small business could rise to solve these new problems. Start brainstorming business ideas by determining where your customers’ pain points are. If you already have a business idea in mind, determine where your business fits into the customer’s needs. Even if these problems are coming to the forefront during an economic downturn, they may not be entirely new problems. Understand how customers were addressing the problems before. Learn who currently provides the best solution to the problem. Define why your business is better and why customers should switch to yours. Many customers are looking to make a switch during a downturn to cut costs or gain a more efficient solution.  

2. Lower Expenses

During hard economic times, other businesses are most likely selling off equipment, assets and supplies and much lower costs. Some businesses may be closing or transitioning to a remote model and selling their office furniture at a lower price. Other businesses are offering deals and discounts in an effort to sign new customers. Take advantage of these deals as you establish your business.  

3. Access to Funding for Small Businesses

Many times, the government releases funding packages to help stimulate the economy during a downturn. These packages are often available to small businesses, including ones that are just starting out. This may also include provisions for tax credits and incentives for businesses filling a niche left in the market by the trend in the economy. Another perk of starting a business during tough economic times is bank rates. There’s a good chance that banks are changing their rates to accommodate the economy and encourage spending. This means lower interest rates for a new business account. There is also a higher chance of getting approved for a higher credit limit than you usually would. Typically, they also reduce the penalty for late payments for lines of credit and loans. Investors are also usually still looking to invest in startups and small businesses, especially ones touting products that are higher in demand during the economic crisis. Startups are inherently risky, of course, but these investors are looking to move their capital from the stock market. Startups are their safest bet, providing them with more security and you with funds for your business.

Bookkeeping Services That Can Change Your Profits

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8 Sep 2020

Bookkeeping Services That Can Change Your Profits

At Better Accounting, we believe that you can’t know where your business is going unless you know where your business has been. Hiring an expert bookkeeper is the first step to creating a sound plan for the future of your business. With timely and accurate financial data and solid bookkeeping expertise, our bookkeeping staff can help your business onto the path of increased profits and growth.  

Data That Matters

An expert bookkeeper will interpret complex financial data to show you how your business is doing. For example, are your sales higher than they were last year? Are you hitting your sales goals? How do these numbers compare to the industry standard? Each of these questions can be answered with some data from your bookkeeper. This financial data can measure your progress toward your business’ goals and to set new goals for the future.  

Information to Keep Your Business Moving Forward

Your bookkeeper will not only help you interpret your financial data. They will also create easy to use reports that you can use to measure your company’s progress. These include common reports like profit & loss statements, but also extend to not so common reports that can really help you understand the dynamics of your company’s finances. Things like cashflow statements, which show how changes in your balance sheet accounts and income affect your access to cash. Cashflow statements project your company’s ability to pay bills and make payroll in the short term. They can be forecast out to show how your cashflow will be affected by certain business changes down the road. Your bookkeeper’s reporting can also help you understand the trend in your business’ finances. They may create profitability reports for you that show how well your company is making money. Your profitability will usually be compared both to a previous period in your company’s financial history and to the industry standard or a competitor. That way, you can keep doing what your company is doing well, and adjust for the things your company is not doing well before it becomes a larger issue.  

Big Business Help, Small Business Prices

The cost of good bookkeeping has a big impact on small businesses. This is especially true when your company maintains a full time or part time bookkeeper on staff. In fact, Most small businesses can only afford one part-time bookkeeper once the cost of hiring, training, salary and benefits is factored in. Additionally, many small businesses do not even have an appropriately sized workload to justify maintaining a bookkeeper on staff at all. Better Accounting offers a solution to this dilemma. Our outsourced bookkeeping consultants have years of experience in a variety of industries, in companies of varied size. With our business model, you pay only for the hours you need a bookkeeper. We take care of the rest. This way, you get all the help you need from an experienced bookkeeper at prices you can afford.