- Create a Budget: Start by establishing a comprehensive budget that outlines your anticipated expenses and revenue streams. Consider both short-term and long-term financial goals, and allocate funds accordingly. Factor in regular operational costs as well as potential large expenditures that may arise.
- Forecast Cash Flow: Analyze your cash flow projections to anticipate peaks and valleys in your finances. By forecasting your cash flow, you can identify periods of surplus and plan to allocate excess funds towards big expenses when necessary. This proactive approach helps prevent cash crunches and ensures you have the resources available when needed.
- Prioritize Expenses: Not all expenses are created equal. Prioritize big expenses based on their potential impact on your business objectives. Consider factors such as return on investment, necessity, and alignment with your long-term strategy. Allocate resources to investments that will drive growth and improve profitability.
- Explore Financing Options: When faced with significant expenses beyond your current cash reserves, explore various financing options. These may include small business loans, lines of credit, equipment financing, or seeking investment from external sources. Evaluate the terms and interest rates carefully to choose the most suitable option for your business.
- Build an Emergency Fund: Set aside a portion of your revenue into an emergency fund to cushion against unexpected expenses or economic downturns. Aim to build a reserve that can cover several months of operating expenses to provide a safety net during challenging times. This financial buffer can offer peace of mind and help your business weather uncertainties.
- Negotiate and Shop Around: When making large purchases or entering into contracts, don't hesitate to negotiate terms with vendors or suppliers. Seek competitive bids and compare pricing to ensure you're getting the best value for your money. Explore discounts, bulk purchasing options, or extended payment terms to optimize your cash flow.
- Monitor and Adjust: Regularly monitor your financial performance and adjust your plans as needed. Track key metrics such as revenue, expenses, and profitability to identify trends and make informed decisions. Stay agile and be prepared to adapt your strategy in response to changes in the market or business environment.
- Invest in Efficiency: Look for opportunities to improve operational efficiency and reduce costs. Investing in technology, automation, or process improvements can streamline your business operations and free up resources for other expenses. Evaluate areas where you can achieve cost savings without sacrificing quality or customer satisfaction.
As a small business owner, navigating big expenses can be daunting. Whether it's investing in new equipment, expanding your operations, or tackling unexpected costs, strategic planning is essential to ensure financial stability and growth. In this blog, we'll explore some smart strategies to help you effectively plan for big expenses and safeguard the financial health of your small business.
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In today's dynamic economy, the concept of a "side gig" has gained significant traction. Whether it's pursuing a hobby, a creative pursuit, or leveraging professional skills, many individuals are opting to supplement their income through side ventures. However, the transition from a casual hobby to a thriving business requires a strategic shift in mindset and approach. Treating your side gig like a business is not just about making a few extra bucks; it's about maximizing potential, fostering growth, and achieving long-term success. Here are some essential strategies to elevate your side gig to the next level:
1. Define Your Goals: Just like any successful business, clarity of purpose is fundamental. Ask yourself: What do I aim to achieve with my side gig? Is it financial independence, creative fulfillment, or something else? Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals to guide your efforts. 2. Develop a Business Plan: A well-thought-out business plan serves as a roadmap for your side gig. Define your target market, articulate your value proposition, outline revenue streams, and set a budget. While it doesn't need to be as elaborate as a corporate plan, it should provide a clear direction and help you stay focused on your objectives. 3. Prioritize Time Management: Balancing a side gig alongside other commitments demands effective time management. Treat your side gig with the same level of respect as your primary job. Set aside dedicated blocks of time for tasks such as product development, marketing, and customer service. Tools like calendars, to-do lists, and productivity apps can be invaluable in maximizing productivity. 4. Invest in Professional Development: Continuous learning is essential for personal and business growth. Invest time and resources in acquiring new skills relevant to your side gig. Whether it's attending workshops, online courses, or seeking mentorship, honing your expertise will enhance the quality of your offerings and differentiate you from competitors. 5. Build a Strong Brand Identity: Your side gig is not just about what you offer but how you present it to the world. Develop a compelling brand identity that reflects your values, resonates with your target audience, and sets you apart in the marketplace. Consistency in branding across your website, social media profiles, and marketing materials will enhance recognition and trust. 6. Focus on Customer Experience: Happy customers are the lifeblood of any successful business. Prioritize delivering exceptional customer service and building meaningful relationships with your clientele. Solicit feedback, address concerns promptly, and go the extra mile to exceed expectations. A satisfied customer is not just a one-time sale but a potential advocate for your brand. 7. Monitor Finances Closely: Effective financial management is crucial for the sustainability of your side gig. Keep meticulous records of income and expenses, set aside funds for taxes, and regularly assess your financial performance against your goals. Consider consulting with a financial advisor or using accounting software to ensure accuracy and compliance. 8. Scale Strategically: As your side gig grows, resist the temptation to overextend yourself prematurely. Scale your operations gradually, reinvesting profits into areas such as marketing, product development, or hiring assistance. Maintain a keen focus on maintaining quality and customer satisfaction throughout periods of expansion. 9. Stay Flexible and Adapt: The business landscape is constantly evolving, and agility is key to survival. Remain open to feedback, market trends, and emerging opportunities. Be willing to pivot your strategy or explore new avenues if it aligns with your long-term vision and enhances the viability of your side gig. 10. Celebrate Milestones: Amidst the hustle and bustle of entrepreneurship, it's essential to pause and celebrate your achievements. Whether it's reaching a sales milestone, launching a new product, or securing a significant partnership, take the time to acknowledge your progress and express gratitude for the support of your customers and supporters. In conclusion, treating your side gig like a business is not just a mindset shift; it's a commitment to excellence, resilience, and growth. By applying strategic planning, dedication, and a customer-centric approach, you can transform your passion project into a thriving and sustainable venture. Remember, every successful business started as a small idea—yours could be the next success story. The Daily Herald had an article on Sunday February 18th 2024 that gets into the finances of it all: https://www.dailyherald.com/20240218/small-business/how-and-why-to-treat-your-side-gigs-like-businesses/ We are thrilled to share an exciting opportunity that could significantly benefit your business. Governor JB Pritzker, in collaboration with the Illinois Department of Commerce and Economic Opportunity (DCEO), has announced the availability of $25 million in funding through the Back to Business New Business Grant (B2B NewBiz) Program. This initiative aims to support new businesses that opened their doors in 2020 or 2021, offering eligible entities the chance to secure up to $30,000 in crucial funding.
Eligibility Criteria: Your Pathway to Funding Is your business ready to seize this opportunity? Here's how you can determine your eligibility:
The application window is open until Thursday, Jan. 11, 2024. Don't miss out on this chance to secure the support your business needs to thrive. How to Apply: Your Gateway to Success Ready to take the next step? Head to [https://b2bnewbiz.com/](https://b2bnewbiz.com/) for comprehensive details on the application process, eligibility criteria, and access to the application itself. The funding you can secure varies based on when your business was established and whether it operates out of a home-based or "brick-and-mortar" location. Key Dates and Additional Resources Save the date! The application period is open from Thursday, Nov. 30, with a deadline set for Thursday, Jan. 11, 2024. Awards are expected to be announced in the weeks following the deadline. For further insights into the program and application process, the DCEO is hosting webinars in both English (Monday, Nov. 27) and Spanish (Wednesday, Nov. 29). To stay informed and make the most of this opportunity, visit the official website. A Call to Growth: Seize the Opportunity We strongly encourage you to leverage this grant opportunity to propel the growth and resilience of your business. Governor JB Pritzker and the DCEO have paved the way for new businesses to thrive, providing a valuable resource that can make a significant impact on your entrepreneurial journey. Don't miss out on this chance to fuel your business's success. Apply now and position your venture for a prosperous future. Get more information here: https://b2bnewbiz.com/ Open enrollment is an important period during which individuals can make changes to their health insurance, benefits, and other workplace-related selections. Here are some key considerations people should keep in mind when going through the open enrollment process: 1. Plan Options: Understand the different health insurance and benefit plans available to you. Consider factors like deductibles, premiums, coverage networks, and plan types (e.g., HMO, PPO, or HDHP). 2. Current Coverage: Review your current coverage to identify what worked well and what didn't in the past year. This can help you make more informed decisions for the upcoming year. 3. Life Changes: Take into account any significant life changes that may affect your coverage needs, such as getting married, having a child, or experiencing a change in your health. 4. Budget: Assess your budget and determine how much you can afford in terms of premiums and out-of-pocket costs. Ensure you choose a plan that aligns with your financial situation. 5. Network Providers: Verify that your preferred healthcare providers, doctors, and specialists are in-network for the plan you're considering. Going out of network can be expensive. 6. Prescription Coverage: If you take regular medications, check whether they are covered under the plan and at what cost. Look into formularies to see if there are generic alternatives. 7. Wellness Programs: Some employers offer wellness programs that can help you save money or improve your health. Look into these and see if they're a good fit for you. 8. Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)**: If available, consider contributing to these accounts for tax benefits. FSAs are used for eligible medical expenses, while HSAs are for those with high-deductible health plans and can be used for medical expenses or saved for the future. 9. Coverage for Dependents: If you have dependents, make sure to enroll them in the appropriate coverage. Assess their healthcare and dental needs. 10. Dental and Vision Coverage: Evaluate whether dental and vision plans are part of your benefits and decide if you need these types of coverage. 11. Disability and Life Insurance: Review any disability and life insurance options provided by your employer. These can be essential for protecting your income and family. 12. Retirement Contributions: If your employer offers a retirement savings plan like a 401(k), consider adjusting your contributions based on your long-term financial goals. 13. Legal Documents: Review and update your beneficiaries on all insurance policies, including life insurance and retirement accounts. 14. Preventive Care: Understand which preventive services are covered at no cost and make sure to take advantage of them for your health. 15. Deadline: Be aware of the open enrollment deadline. Missing it may mean you can't make changes to your benefits until the next open enrollment period, unless you have a qualifying life event. 16. Ask Questions: If you have any doubts or questions, don't hesitate to reach out to your HR department or insurance providers for clarification. 17. Compare Plans: Take the time to compare different plans, either on paper or using online tools provided by your employer, to make an informed decision. 18. Seek Professional Advice: If you have complex insurance needs or are uncertain about your choices, consider consulting with an insurance broker or financial advisor. 19. Record Keeping: Keep records of your selections and any communication related to your open enrollment choices. This can be helpful in case of disputes or issues down the line. Open enrollment is a critical opportunity to ensure that your healthcare and benefits align with your needs and preferences, so it's essential to make informed decisions. Important dates
Matching Ideas with Resources:We have resources that can help you with these decisions!
There are specialists that help business owners and their employees AND others who can help individuals. Contact Tom Gosche at tomg@goglm.com or 630-675-8971 and he can get you to the right person to help you! Thanks to a slowing economy, SBA loans have been growing in popularity. So much so The Daily Herald had a Featured article about them in the March 19th, 2023 Sunday Business Section.
www.dailyherald.com/business/20230319/thanks-to-a-slowing-economy-sba-loans-have-been-growing-in-popularity No matter what, you need to talk with someone, an expert that helps business owners daily! We advise you to talk with one of the contact at the bottom of this Matching Ideas with Resources Blog. Typical Situation: Our client is looking to expand their business or perhaps make a business acquisition. They might be looking to purchase equipment, inventory, or real estate. Maybe they also need working capital to expand. We are primarily looking to lend to businesses in underserved areas to create quality jobs When you hear a business owner say: • “I would like to expand but I my bank won’t lend the full amount I need” • “I just got declined for a loan from my bank to buy R/E, equipment, inventory, working capital” • “I want to buy out my partner (or purchase a business) but can’t get financing” • “My bank approved the equipment loan but they only gave me a 24 month term, I’m afraid of a payment that large.” SBA (Small Business Administration) Bankers serve as a trusted banking solution. They Make $1MM-$5MM loans to small businesses. How they Work: They use Government loan programs, to businesses that meet SBA guidelines. They are able to do this by treating the building acquisition as simply an extension of their existing business, rather than a new acquisition. Matching Ideas with Resources: The Daily Herald had an article in Sunday’s Newspaper about the importance of an Accountant or CPA in advising your business. You can imagine that we at GLM agree with this this. Having an outside look at your business and finances is very important to the growth and stability of your business.
About the Author: Denice Gierach is an attorney, CPA, Northwestern University business master's graduate, and has owned several businesses including in real estate and manufacturing. She is the lead attorney at Gierach Law Firm in the Chicago area. With more than 30 years of experience, she has been a respected and sought-after resource for businesses looking to grow, sell, solve problems, and succeed long term. Her insights across business areas gives a fuller lens to business issues and solutions, and helps businesses grow and succeed with less time spent on legal issues and other time-consuming problems Here is a link to the Article: https://www.dailyherald.com/business/20221204/the-importance-of-involving-your-cpa-in-your-business The Tuesday after Thanksgiving marks Giving Tuesday when many people choose to make charitable donations. People making charitable donations for Giving Tuesday, or at any time during the year, should review whether their gift is tax-deductible.
Donations to charities may be deductible Most contributions of cash or property made to a charitable organization are deductible as an itemized deduction on Schedule A, Form 1040, Itemized Deductions. Cash contributions include those made by check, credit card or debit card, as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization. Donations of property other than cash are generally deductible at their fair market value. There are some contributions that aren’t tax deductible, including donations:
Some things to do when a taxpayer is considering making charitable gifts include:
Tax Exempt Organization Search tool As people are deciding where to make their donations, the IRS has a tool that may help. Tax Exempt Organization Search on IRS.gov is a tool that allows users to search for charities. TEOS provides information about an organization's federal tax status and filings. Things to know about the TEOS tool:
Qualified charitable distributions Taxpayers age 70 ½ or older can make a qualified charitable distribution directly from their IRA, other than a SEP or SIMPLE IRA, to a qualified charitable organization. The maximum annual amount a taxpayer may exclude from income for a QCD is $100,000. A QCD may also count toward the taxpayer’s required minimum distribution for the year. Taxpayers should review Publication 590-B, Distributions from Individual Retirement Arrangements, for more information. We recently met with Wendy Schulz, Preferred Funding Group based in West Dundee. They help to secure the funding you need to start or grow your business with help from their trusted team of Experts! Whether you’re looking to start a new business or looking to grow your business, a personal or business loan from PFG can make your plans into a reality. Qualify for up to $500,000 today FUNDING PROGRAMS
TERM LOAN PROGRAM
REQUIREMENTS
BUSINESS CREDIT CARD PROGRAM
REQUIREMENTS
Apply today: https://preferredfundinggroup.wufoo.com/forms/q1b99q130o9718l/ Further Questions? Please contact: Wendy Schulz 847-791-3668 wendy@preferredfundinggroup.com Preferred Funding Group 109 W. Main St. West Dundee, IL www.preferredfundinggroup.com |
GLM's BlogIn true blog fashion, the last parts are at the top of the page. Scroll all the way down and work your way back up to read them in order.
Tom GoscheTom is the Business Development Manager for GLM. If you are interested in learning more about GLM's services, contact him: 630-675-8971
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