Congratulations on starting your new business. Now that you have launched your new business, I am sure that there are many challenges you are facing including many financial challenges. If you have found this blog post like many small business owners, including myself, you are looking for some help with solving some of them. Below are 6 common financial challenges that new businesses experience.
- Knowing your clients and suppliers – Your ability to grow your business is dependent on your ability to get paid. It is important for any business, especially new businesses, to know their clients and suppliers to help ensure you will get paid for the work you have done.
- Initial and maintenance software costs – Starting a business can be expensive. You are an expert at what you do so you are familiar with the necessary equipment needed to get the job done but in addition to that you will also need to purchase and maintain costly financial software because unfortunately an Excel spreadsheet won’t cut it.
- High overhead costs – When just starting out most business owners find the best approach to staffing is to get by with as few employees as possible in order to keep overhead costs down.
- Access to lines of credit – Since new businesses have limited business history banks can be hesitant to lend you money.
- Credit Score and Credit History – It takes time to build your businesses credit score and credit history so you don’t have to rely on your personal score and history.
- Managing cash – With a limited history with suppliers your payment terms might be shorter than if you were an established business. This could cause a greater amount of time between when you get paid and when you have to pay your bills.
One easy solution to the 6 financial challenges above is to partner with a company that can manage your back office and provide alternate financial services. With a company, such as CapitalPlus Financial, you can utilize their credit monitoring services that will allow you to get insight into the financial situation of your clients and suppliers. You will also save on financial software and staffing when you work with our professional and experienced staff. We can also work with you on alternative financial services that will get you access to immediate working capital, which is based on the credit score and credit history of your clients. With CapitalPlus Financial you will get the partner you need to alleviate some of the stress tied to common financial challenges for new businesses.