Business

If you’re wondering how many stamps you need, the number will depend on the weight, size, and class of the item or package you’re mailing. As soon as you have these details, you can use a postage cost calculator to have an idea about the total cost of postage.

The majority of businesses these days are good at reducing expenses. But, unfortunately, they are having a hard time saving on business postage.

While many don’t know how to save on small expenditures, such as postage, some businesses simply don’t care. But, little did they know that they’re losing a considerable amount of money annually on postage only.

Businesses, no matter how big or small they are, can benefit by keeping their postage costs as low as possible. Aside from using the right amount of stamps, there are many other things you can do to save on business postage, such as the following:

Cut The Number Of Rushed Mailing Fees

In the business world, sometimes, mail needs to be delivered immediately. In these instances, most mailing companies tend to raise the fees. Of course, you’ll need to pay for that since the mails need to be sent urgently. As a business owner, you need to come up with a smart strategy ahead of time.

There are mails that don’t need to be delivered and arrive the following day. When you plan ahead, you need not be scrambling to send out mails at the last minute. Make sure to draw out plans to know which mail should leave when it’s best to send out. If there’ll be emergencies, possibly, they’ll be restricted.

Clean The Mailing List

If you’ve been in the business for quite some time, for sure, you’ve already built a long list of clients you’ve regularly mailing to. However, some of them may have already passed away or changed addresses, while some of them are no longer interested in what you’re sending out. When you keep on sending mail to these people, it is, in fact, one of the financial mistakes you’re making for your business.

When it comes to cleaning your mail list, the postal service can help with the addresses that have changed. What’s more, you’ll need to find a great way of checking with your receivers to find out if they’re still interested in getting mail from you. Although this may look drastic, doing this will help you save money, not only in postage, but in overall mailing list expenses.

Maximize Costs By Halving The Mails

Rather than sending out different mails at different periods, consider putting them together and then send them as one. For example, if you’re planning to send statements of accounts and marketing mails, rather than sending the statement of account and the marketing mail separately, put the documents in a single envelope. The receivers won’t even know about it; as a matter of fact, they’d even be thankful because they’ve received all the needed documents in one.

Automate The Process

One of the smartest things you can do when sending out lots of mail is to make the process much easier and simpler. For this, the easiest way is to automate the process. You may need to invest in mail software and equipment that can help in sorting out mailing information, as well as help you handle problems about sorting addresses and names so that data won’t be duplicated.

To make the process as smooth as possible, you might need to invest in an automatic mail opener, sealer, and labeler.

Invest In A Franking Machine

Imagine, your business is sending out thousands of mails each month at the cost of USD$1 each. On average, it’ll cost you USD$12,000 every year and USD$1,000 every month. Imagine if you could save 50% of the mailing cost, it means you’ll be able to save USD$6,000 annually and USD$500 monthly.

In fact, that’s a huge amount of money that you can use for other important needs of your business. With that in mind, a lot of business owners are on the lookout for a way to cut down the expenses. Hence, you should invest in a franking machine.

Typically, one machine will amount between USD$1,000 and USD$1,500, whereas the higher-end models will cost as high as USD$25,000 or more. On the one hand, you may need to spend USD$500 to USD$800 to lease.

Nowadays, a lot of businesses have invested in a machine like a franking machine in order to save a considerable amount of money. Both individuals and businesses are continuously looking for ways to save not only on postage and shipping, but on other expenditures as well. As a business, whether individual or corporate, you need to keep on looking for ways to save, including on postage, to stay competitive and afloat.

Consider A Forever Stamp

Did you know that there are special kinds of stamps that are readily available at the post office?  Yes, it’s true, and that’s popularly known as the forever stamp. The advantage of this stamp is that when the costs of stamps increase, a forever stamp doesn’t get affected by the changes. The price remains forever the same.

Use Mail In Sending A Smaller Item

When you’re only shipping a small item, the mail is an inexpensive solution you can use. You can use this method to send all items that can fit inside a big envelope and weigh not more than 750 grams. Sending cards and letters via usual mail is the least expensive option available. As a matter of fact, no courier can beat that. As the price is constantly changing, you can stock up on stamps since they never expire.

Final Say

As a business person, you need to keep looking for ways to cut down expenses, and, hopefully, the above-mentioned ways to save on business postage will be beneficial to you. In addition to that, a little research on your part and consulting other business owners would definitely help you look for other methods you can use to save on postage.

Money is probably the scarcest but most vital resource every small business founder has. Without capital, you can’t make your great idea a reality, and it can take over a year before you start collecting an income from your business. Because education and loan options have expanded, startups are even more popular than before. Someone can start a business from their bedroom with minimal overhead or expenses! But if you want to get serious about turning your startup into a profitable brand, here are a few beginner mistakes to watch out for.

Handling Everything on Your Own

Bookkeeping is difficult, especially if you do not consider yourself money smart. While you can build financial literacy on your own, it is often best to let a professional accountant help you manage your business’ finances. You may not be able to hire a full-time chief financial officer (CFO), but you can outsource work to accountants for hire and get help with things like invoices, taxes, and expense reports. If you want to learn more about budgeting yourself, you can consider expanding your education. A business degree, especially an MBA, can give you the foundation necessary to perform a wide range of tasks that other entrepreneurs have to hire other people to perform for them.

Acquiring the funds to get an MBA might feel like a roadblock, but there are options. You might consider borrowing a student loan from a private lender to cover the cost of tuition and other expenses. Private loans are an excellent form of capital for graduate students because you receive a low interest rate and can easily take advantage of refinancing and consolidation in the future.

Not Keeping Statements

With so much digital currently, many entrepreneurs think they can fully automate bookkeeping. While there is plenty of software available that can make the process easier, you should still save every receipt and have physical documentation of your income and expenses. Print out your monthly bank statement, and make sure you have a separate account for your business. One of the worst things you can do is have all the costs and profits from your company being mixed into your personal finances.

Hiring Unqualified People

When you do not have a huge budget for workers, your hiring pool dwindles. Many startups are so eager to build a team that they don’t put enough thought into the people they’re bringing on board. You have to think about the big picture. Is this person able to provide a long-term value to your company and assimilate to its potential growth? Is their skill set aligned with your consumers’ needs and your own requirements? Avoid hiring just for the sake of having another pair of hands. Be meticulous, and make sure the people you incorporate into your company are committed to your vision and capable of performing their roles well.

Not Planning for Disaster

Let us say your profit is up for a few months only to tank unexpectedly. Do you have the resources in place to keep operations working as usual despite the reduced income? Cash burn, which is the amount of capital a startup spends each month on regular expenses, can quickly cripple you without forethought. Take time to consider some “what-if” scenarios; they’re more common than you think, and it’s always good to know what cards are in your hand in the event of a sudden downfall or major loss.

A positive mindset is essential for success in all types of business. Helpful and productive thoughts drive us to carry out new actions and undertakings. It’s the positive thoughts that spark constructive action which make up the positive mindset.

Everyone wants to be successful in business. However, not many people know that to be successful requires commitment and consistency in everything that we do. A person with the ability to strongly visualize their goals has a positive mindset and therefore has a high chance of success in business.

The power of positive thinking has been demonstrated in scientific studies which, for years, have been dedicated to investigating the impacts of positive thinking on our actions and life.

Many of these studies agree on the same thing: people who maintain a positive attitude towards their profession or work benefit mentally. For example, this research article by Elizabeth Scott explains how positive thinking and optimism boost resilience and lower stress levels.

If a positive mindset can be focused on a business goal, the end result should be a success. According to Just Business Today, positive thinking helps with employee productivity, customer experience, overcoming obstacles, and personal drive.

However, simply having a positive mindset is not enough. You have to know how to apply your thoughts productively on a day-to-day basis.

Projecting Positivity Boosts Team Performance

The way we communicate has an incredible impact on people’s perception of the business we are involved in. Suppose you transmit a negative image in business due to negative thoughts and messages. The pessimistic outlook is likely to be reflected in your co-workers’ attitudes and the impressions your team creates to customers and clients.

You should clearly and positively approach your way of speaking and expressing yourself. For example, instead of asking yourself “Why don’t customers come to buy?”, ask yourself “How do I attract that customer to purchase my products?” A positive approach shifts focus towards the solution to each problem and obstacle that comes your way.

Positive Thinking Helps You Focus on the Present

Planning is an excellent tool for entrepreneurship. However, constantly thinking about future plans that are far from materializing can distract from the day-to-day activities needed to get there. You may start to see a gulf between the current situation and the future dream and so drift into a state of doubt and inaction.

If we focus our thoughts on present tasks, we can create smaller, short-term goals and start ticking them off. You may notice that breaking down thoughts and actions into practical steps simplifies how we see problems and makes progress more manageable and achievable. The best way to keep a positive mindset and maintain enthusiasm is by consistently achieving goals.

Channel Your Energy into What You Can Control

Entrepreneurs or employees often have a perfectionist streak and want to maintain a tight grip on business operations. Inevitably, things don’t go according to plan and a defeatist mood can take over, stifling progress.

You have to understand that many situations and forces are out of our hands. So, instead of focusing on the negative at the moment, focus on immediate solutions so that you can get out of problems gracefully. Confine your thinking to what is under your control and do your best in that particular domain.

Being positive in business does not imply that everything is perfect. You will always have problems. Positive thinking allows you to approach problems in a way that looks at what can be done instead of focusing on how far you are from the ideal.

Delegation is More Than a Tool

When anyone is having negative thoughts, you may tend to believe that you are alone. Such thinking can lead us to close ourselves to changes, not find rest, or not to have a balance in our actions.

In your own business or as an employee, you must have the ability to positively visualize. Try to see the collaboration of many elements that will bring you cohesiveness and peace.

Sometimes, we close ourselves to receiving help due to a lack of confidence. The negativity of this kind leads to an overload of work, eventually leading us to lose the positive mentality that we have cultivated.

Delegate functions and responsibilities to others when you need to. It eases your workload and gives you more time to find new approaches for the business.

Positive Energy is Service Delivery Brings Repeat Business

What you think and how you think about it may be the only difference between success and failure. Thoughts influence the way you act in all areas of business.

Customers and clients notice the energy of the provider when they receive a service. Is the service delivered with care, on time, and with a friendly tone? Your mindset is likely to be revealed one way or another. A positive mindset is one thing you can control to help bring repeat business.

The COVID-19 pandemic has affected the world in so many ways, and businesses have needed to adapt in a number of ways to stay operational. Many businesses have had to temporarily close their doors owing to the negative impacts of the pandemic. On the other hand, many businesses have fought tooth and nail to survive amidst this global pandemic.

Now we’re seeing a light at the end of the tunnel, and there is talk of restrictions easing. However, businesses should be careful not to be complacent in seeing this as a return to “normal”. We must remember that many of the changes that occurred during lockdown were not temporary but will have a long-lasting effect on how a business functions.

Now that the restrictions are easing off, businesses need to re-evaluate how they will bring themselves out in the market in this new normal. There will involve not only functional changes but tools and systems and structural changes as well.

Review Work Models

During the pandemic, many businesses have moved to a remote work model. That is why when a business reopens after the pandemic, one of the first thing they need to do is review is whether they will continue with remote work, bring their staff back to the office, or a combination of the two.

Businesses should consider that their employees’ personal situations may very well have changed over the course of the pandemic and they need to provide workable solutions for everyone. They may need to introduce new policies depending on the current situation.

Be Prepared for Crises

Over the past year, businesses had to go through many crises and taking stock is necessary before you move forward with a new plan. It is essential that the new plan sets you up to be prepared for whatever crisis may be just around the corner.

Although restrictions are easing now, the past year has shown us that they may be re-introduced at any time. Therefore, your business must have plans in place to rapidly and effectively respond if this happens without threatening your operations.

Identify Scope of Failure

Businesses need to keep in mind that even though they have had more than a year to understand this situation, they could still fail. You might come up with different contingency plans to make your business survive. However, there can be drastic changes that could lead to the failure of those plans.

That is why you need to have backup plans that will lessen the blow. Develop plans that would help you continue your business as smoothly as possible. You need to take into consideration the past failures and the pain points that you have identified. Above all, make sure you are in a position to be flexible – that way, you’ll be able to deal with anything that life throws at you.

Ensure Proper Communication

Communication with your staff and stakeholders is essential once you decide to reopen your business in the context of the pandemic. Even if restrictions are being eased, your business will go through a lot of changes. Your employees and stakeholders are the two main pillars of your business, and they must be kept in the loop.

These two groups need to be assured that they are protected from ongoing mishaps. You will need to enhance your leadership role and look after your staff, customers, and others associated with your business.

Be sure to keep the communication consistent so that people know everything you plan on doing. Even if your organization has suffered losses during the pandemic, this doesn’t necessarily mean you’ll need to let your staff go. You may be able to find solutions your staff can keep their jobs while helping to get your business back on track.

Keep Track of Other Risks

COVID-19 might be the only threat on your mind at the moment, but there are other risks to consider as well. Your business is vulnerable to many threats such as cyber theft, aggressive competition, market changes, and more. Don’t let COVID consume you to the point that you overlook the other threats facing your business.

You need to prepare your business and put yourself in a position to withstand various threats. Prepare your staff in the same way and emphasize different areas that need to be considered. Make sure you have proper contingency plans in place to deal with each threat.

Summing Up

A business needs to protect their greatest assets: their people. During the pandemic, many businesses have suffered huge losses and had to let go of staff members. However, with the ease of restrictions, businesses are slowly building up to return to their former self.

The pandemic has changed the business landscape, perhaps forever. It is important for companies to consider these changes and be adaptable to sustain their business in the long run.

In recent years, solo entrepreneurship has become a hot topic among modern workers. With modern technology, it’s easier than ever to build a personal brand and start your own business. Are you ready for the adventure of solo entrepreneurship? These tips will help you make your dreams a reality!

Learn Your Local Laws

For legal and tax purposes, one-person businesses are typically treated as sole proprietorship. You will want to do some research about your local business laws to see if a sole proprietorship is right for you. Many solo entrepreneurs find that a Limited Liability Corporation (LLC) is more beneficial than a sole proprietorship because an LLC can protect personal assets.

If a lawsuit or claim against your business upsets your cash flow assets, an LLC will keep your personal assets protected. LLC holders can also claim business profits and losses on personal tax returns, nullifying the nightmare of paperwork faced by people forming a regular corporation.  Check with your local government to see if an LLC is right for you.

Create a Business Roadmap

For the solo entrepreneur, a business plan is crucial. Because there is only one of you, your time is your most valuable resource. Take time to envision not only your goals but how you intend to get there. Drafting a business plan at the beginning will save you time and headaches when you need to make decisions down the road. Drafting a thorough business plan can help you foresee problems and anticipate solutions.

Build Your Website

Gone are the days of the brick-and-mortar storefront. These days, your webpage is the face of your business. It is crucial for the solo entrepreneur to have the right professional image. Prospective clients will choose whether or not to work with you based on your website, so it is important to have an operable website that looks professional. Above all, potential customers need to be able to easily purchase whatever product or service you are selling from your website.

If your website is not easy to navigate, then your website is not an effective cash flow asset.  If you intend to expand and are trying to give the impression that this is more than a startup you can add multiple departments, such as customer service, sales, and accounting, to give customers and potential new hires a sense of confidence in your new business.

Acquire a Business Bank Account

It seems a little backward as a solo entrepreneur since there’s only one of you. But it is absolutely crucial to have a business bank account. You cannot use your personal account for business expenses unless you want a huge headache at tax time. Not having a business bank account could even threaten the legal status of your LLC. Go to your local bank, open a separate account for your business, order some business checks, and acquire a business credit card. This way, all business and personal expenses are separate, both making record-keeping much easier and preventing future trouble with the IRS.

Effective Time Management

As a solar entrepreneur, your most important cash flow asset is your time. There are only twenty-four hours in a day and no other employees to share your duties, so time management is crucial. If you are struggling with time management, go back to your business plan. Take out your business plan, look at your goals, and break them down into small steps. Keeping things broken into small, actionable steps can help mitigate the sense of overwhelm that can come with starting a new business.

Keep your focus on steady progress rather than lofty goals. If you still find the to-do list mostly unchecked, take a week to track how you spend your time each day. Oftentimes people find that there are times when they could be more productive, so bringing a sense of mindfulness to your time can make you a more effective business owner. Also bear in mind, as a solo entrepreneur, you are not bound to a nine-to-five schedule.

If you find that you are more of a night owl, feel free to work well into the night and sleep until noon. Schedule your working hours for when you are most energetic and productive.

Technology is Your Friend

Currently, there are a plethora of apps available to help small business owners run their businesses more smoothly. If you don’t have all of your business documents in cloud storage already, put them on a cloud. You need to have your documents available on all devices. Need to track expenses? There’s an app for that. Need a way for customers to make payments?

There’s an app for that. Need to make an urgent purchase. It’s the twenty-first century, of course, there’s an app for that! There is almost nothing you cannot do with your smartphone nowadays, from generating invoices with FreshBooks to learning how to short a stock on Robinhood, or even finding a new member of the team on Linkedin.

Learn to Delegate

Remember that part where you only have 24 hours in a day? As soon as you can afford professional help, get it. There are two types of duties to delegate: gruntwork you hate, like scheduling meetings and scanning documents; and things you aren’t good at, like SEO optimization and bookkeeping. You as a solo entrepreneur know what your time is worth, so delegating tasks that you are less effective at can optimize your working time, which is your number one cash flow asset.

Starting a business alone isn’t easy, but for many, it is the most rewarding career path. These strategies will help you conquer challenges and become a successful business owner.

The process of starting and running a small business isn’t easy. It can be a stressful experience, especially if you don’t have enough knowledge of business management. Though running your own business may give you the freedom and wealth you’ve always wanted, your dream might not come true if you’re not smart with your finances. 

Running a business involves many decisions and considerations, but the most critical consideration is examining your financial status. To succeed in managing your business, you’ll need to know which financial decisions to make to run your business in the right way.

Making the wrong decisions can harm your business before it even gets off the ground. If you’re unsure which financial decisions to make, you can always consult resources from Personal Money Store for advice.

This article explains the most important financial considerations to ensure you make the right decisions for your business. Read on:

1. Reduce Overheads

When running a small business, it’s vital to minimize your expenses as much as possible. Note that every coin you use to pay for expenses reduces your profits. So, it would be helpful if you can optimize your spending. 

Only consider paying for essentials and avoid spending your money on anything else. You can achieve this by listing down all the essential overheads that you think are necessary for the growth and expansion of your business.

2. Have A Line Of Credit

Other than your initial investment, you’ll likely need to access other funds to keep your business afloat. Keeping a line of credit helps access funds other than the initial investment. This allows you to have other financial options so that your business can stay strong, especially if you financially struggled during the initial stages.

You can do that by taking out a line of revolving credit instead of taking a traditional line. With revolving credit, depending on how the lender views your creditworthiness, you can extend your credit limit. Once a line of credit is set, you can borrow money at any time as long you don’t go beyond your limit. This kind of borrowing ensures you don’t run out of cash to run your business. 

3. Separate Your Personal And Business Finances

Everyone starts a small business with a dream that it’ll grow and start competing with the giants in the industry in due time. In this regard, personal funds are considered as venture capital, especially when starting a new business.

While having your personal funds and business funds under one account isn’t a problem during the initial stages, it’ll be necessary to separate them as your business grows and starts making profits. This is more helpful when it comes to tax purposes. It also helps eliminate unnecessary spending. Ideally, it would help if you can start this habit even before your business grows so that you can keep a track record of every dollar earned and spent by your business.  

Having a clear line between your personal and business funds can also help you know your financial stability, which may impact your creditworthiness if you need to take a loan for your business. For instance, not keeping a separate account can affect your creditworthiness since the financial institutions may find it harder to determine the financial stability of your business. 

4. Follow Zoning Laws

Sometimes, depending on the region you live in or the type of your business, you might not be able to manage your business out of your home. Be sure to check with your local zoning office to determine whether it’s possible to run your business from home. 

You might be required to pay some levy to be allowed to run your business from home. On the other hand, if you can’t run your business from home, you’ll have to secure a premise where you’ll be paying rent. 

5. You May Have To Use Your Savings To Run Your Small Business

Starting and running a small business requires capital. There are many ways of getting startup capital, and using your savings is one of them. You’ll need capital to buy items such as office supplies, computers, and other equipment. These items don’t require a lot of money, and you can use your savings to purchase them. However, if you want to buy a large amount of stock, you might need to consider taking loans. 

6. Insure Your Business

While you might think that insuring your business isn’t vital, there are some unforeseen challenges like legal claims and accidents that might cost your company in the future. Without insurance, you might be forced to use the profits generated by your business to cover these damages.

You may consider insuring your business as additional expenses to your business, but it’ll save you a lot of money in the long run. You only need to understand which insurance coverage you’ll need for your business.

Ideally, you’ll need employees’ compensation insurance in the event that they’re injured while on duty. You’ll also need to insure your assets and purchases in the event that they’re damaged or stolen. 

You need to understand that insurance will become a necessity as your business grows. It’s therefore important to understand and start planning which insurance coverage you may want as your business grows.

7. Keep A Track Record Of Your Spending

Every small business owner wants to make profits. However, most of them can’t explain in detail how much money they earned and how they spent it. Failure to track your spending is inviting a financial disaster to your business, and you’ll find it difficult to know how much money you have. Monitoring your spending is vital for your cash flow management.  

To keep a track record of your spending, you can hire a professional accountant or use accounting software. They’ll help keep track of every coin gained and spent. Monitoring your spending will make your business financially stable, and you’ll be able to maintain a successful company. 

Takeaway

You need to make many decisions when running a small business, and making the right financial decisions will give you the confidence and peace of mind to move forward in running your brand. For your business to stay afloat and thrive in the long run, you need to learn how to make these careful considerations consistently.