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Every Business Needs a Safety Net

For small businesses, it's crucial to have a safety net in place in case something goes wrong. Unexpected problems can arise at any time, and if you're not prepared, they can quickly send your business into a tailspin. From the Portfolio Management Group, here are some tips on how to create a safety net for your small business:

Build Your Liquidity

Having a cash reserve is like having money in the bank for your business. It's there to cover unexpected expenses or help tide you over during lean times. Ideally, you should aim to have enough money in your cash reserve to cover three to six months' worth of operating expenses.

Get a Line of Credit

A line of credit is like an insurance policy for your business. It's there to provide you with funding in case of an emergency, such as if you need to make unexpected repairs or replace equipment.

Have the Right Business Insurance

Insurance is another important part of creating a safety net for your business. Make sure you have the right coverage in place so that you're protected in case of an accident, theft, or natural disaster.

Switch to an LLC Structure

If you're not already doing business as an LLC, now is the time to make the switch. An LLC offers personal liability protection, which means that your personal assets are shielded from creditors if your business is sued.

Prioritize Recurring Revenue

A recurring revenue model is a great way to stabilize your cash flow and ensure that you have a steady stream of income coming in each month. This type of model allows customers to pay for access to your products or services on a recurring basis, such as monthly or annually.

Always Watch Your Cash Flow

Keep tabs on your cash flow so that you can identify any potential problems early on. This will help you avoid getting caught off guard by an unexpectedly large expenditure or slow sales period.

Maintain Your Financial Documents

Organizing your financial documents will help you keep track of everything in one place and make it easier to find what you need when you need it. You can make this easier through the use of PDFs. When you convert your files to PDFs and use free tools, you have the ability to modify files as needed. Whether you need to edit out old pages or add new ones. Plus, PDFs can be password-protected for added security.

Trim Costs

Another tried and true way to bolster your bottom line is to cut costs where you can. Look for ways to streamline your operations and trim non-essential expenses from your budget. You can:

 ●       Renegotiate contracts with vendors and suppliers on a regular basis

●       Take advantage of discounts and bulk purchasing options whenever possible

●       Avoid wasteful spending with a budget you can stick to

●       Make use of free or low-cost marketing channels such as social media and word-of-mouth advertising                                                      

A Home-Based Business Needs a Home Warranty

If you run a home-based business, consider buying a home warranty to protect yourself from unexpected repair and replacement costs. A home warranty can help reduce the financial impact of covered repairs or replacements, giving you one less thing to worry about if something goes wrong. When reviewing the best Florida options, look for a company that gets top reviews and offers top-notch coverage.

  These are just some of the ways you can create a safety net for your small business. By converting your business structure, cutting costs, adding a home warranty for a home-based business, and watching your cash flow, you'll be better prepared to work through any storms that come your way.

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What Every Business Owner Should Know About Cybersecurity

If your online security system isn’t top-notch, then your business is at risk — it’s that simple. Moreover, cybercriminals are as devious as they come, which is why your cybersecurity matters so much these days. Here are some helpful tips on how to stay on top of your security, courtesy of Portfolio Management Group.

What's on the line?

To establish the magnitude of cybercrime, one just has to look at the many companies that have been swindled out of millions, not forgetting those that have suffered severe reputational harm from fraudulent cyber activity.

Look into password protection

As frustrating and time-consuming as it is to think up long and complicated passwords, it is vital to do so to ensure your data and information is kept safe at all times. As a general rule of thumb, the longer the password, the better, as is using a combination of higher and lower case letters and numbers to ensure your password is that much more difficult to hack.

 Furthermore, password-protected PDFs add an extra layer of protection when it comes to safeguarding sensitive information. Also, be sure to change all your passwords every so often. If managing your PDFs and passwords has become cumbersome, a PDF merger can help merge your PDF documents into a single file, where you can rearrange them in the order you want.

Double up on data protection

Since a data breach could spell the doom of your company before you even get started, this is one area that’s absolutely worth taking seriously. For that reason, you might want to invest in a service like Tausight, since it’s designed to safeguard all your data by employing a situational, real-time PHI awareness platform. That’s especially vital in areas where the information and confidentiality of your patients, clients, or customers is paramount.

Not having a backup plan

It's always a good idea to have a backup plan, just in case something happens that you can't avoid. A recovery plan also goes a long way in backing up your data if lost or stolen, so you don't lose this information altogether. Be sure to have someone in charge of this role to ensure nothing gets lost by accident. Overall, your recovery plan will need to be fine-tuned down to the last detail so that business can resume normality as quickly as possible.

Make sure everyone's involved

Everybody in your company should be involved in the fight against cybercrime. So do your best to educate your staff on how to spot a fraudulent email from a mile away or how to notice when something's gone awry on the business's bank statement before it's too late.

 Certainly, if your business has been hit by cybercrime, then you are sadly one of the many statistics that occur on a daily basis. However, being proactive is the key to protection. So, do your best to spot cybercrime before any serious harm to your business ensues.

 Portfolio Management Group helps make small business dreams a reality. Call 727-370-3080.

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The Entrepreneur’s Guide to Multi-State Home Ownership

For business owners with a national presence, owning homes in multiple states can allow you to attend to company matters on the ground wherever your business operates. But managing several properties while running a business can put a lot on your plate! With support and guidance from Portfolio Management Group, you can prioritize sustainable business growth. Furthermore, these pointers can help you designate a registered agent for your business, set up security systems for your properties, create a budget that works for your lifestyle, and more.

 Smart Home Security

Do you run your business out of your various homes? If so, you might feel a bit nervous about leaving your documents and equipment unaccompanied at your properties when you’re not home. You can put your mind at ease by finding the right security products for your properties. This will keep your family and any items in your home secure when you’re out of state. If you want to ensure that you’re making a good investment, read unbiased product reviews before shopping. By finding reliable product recommendations, you’ll be able to pick out a great alarm system, cameras, safes, digital locks, and more.

 Work With a Registered Agent

As a business owner, you need to assign a registered agent who can handle key company tasks when you’re not available. While practically every business owner has to choose a registered agent, it’s especially important for entrepreneurs who live in multiple states. When you’re on the go, you want to know that someone else can take care of your business affairs.

You may also want to hire a personal assistant who can work remotely. They can oversee lots of tasks for you, from answering emails to schedule management, so that you can relax while traveling between homes.

 Dealing With Insurance

When you own homes in different states, you might have trouble determining which health insurance policy to purchase. After all, policies are tied to specific states. Investopedia states that some plans don’t necessarily provide comprehensive coverage in every state. Even if your plan does offer coverage in different states, you may not have access to in-network providers everywhere.

What’s the best strategy? You may want to base yourself in the state with the most affordable health insurance! Remember, you’ll also need to choose one state to register your car and take out an insurance policy, so you can use the same technique for managing auto insurance.

 Analyze Your Living Expenses

Moving between states can get expensive - but when you have access to essential services in different states, you can also spend your money wisely to keep your living costs low. Here are a few key living costs and how much you would spend on them in different cities:

 ●��    An apartment in St. Petersburg, FL, will generally rent for about $1,861 per month.

●     In nearby Tampa, FL, residents can expect to spend about $3,480 on groceries each year.

●     If you’re going to the doctor in Atlanta, GA, you’ll probably spend about $24.70 per visit if you have insurance.

●     Are you looking for a daycare center in Birmingham, AL? Winnie states that you should plan to shell out $925 per month.

●     Do you need to move within Texas? Finding San Antonio storage units is easy, and it will only cost about $107.75 per month.

 As a business owner with a growing company, owning properties in several states can be a boon for you. You'll be able to easily meet with clients all over the country and operate brick-and-mortar locations anywhere. By putting some of these tips into action, you’ll find it easier to manage your budget, home security, business operations, and insurance!

Want to focus on growing your business? Portfolio Management Group can help! Fill out the contact form on our website today to set up a free consultation.

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How to Transform Your Idea Into a Business

Most startups in the US never survive past their first birthday or fail before hitting the five years milestone. You might have a perfect idea that solves a market problem in the right location in Tampa, but without a proper game plan, your business could fail before its maturity. At Portfolio Management Groups, we help small businesses to grow from startups to established ventures.

Read on how to groom your business idea to fruition.

Research Competitors

A good business idea fills in a market gap: it should solve a problem in the market. Research the market niche to understand how you can refine your business idea to solve the problem. Investigate companies that offer similar services to understand how you can make your product unique. Check out their pricing and investigate customer experience to refine your product idea. Follow their social media pages and websites to know their advertising and marketing strategies that make their product tick. Inquire from competitors and customers about their pricing and product experience. Analyze the feedback and adjust your plan to accommodate these changes to improve your idea. Also, get a supportive mentor like a Portfolio Management Group consultant who works with you throughout the process.

Network

Research about your intended business location to know its perks. Network with the people in the area to get valuable tips to better your idea. Look around for friends and family who can give you more insights into the business idea and area. Old friends offer great information on business locations in Tampa. Reach out to your fellow high school graduates to share ideas — type your Tampa school's name, graduation year, and your classmate's name to get their information.

Develop a Business Plan

Once you gather enough information, write down your business plan. An elaborate business plan should include your objectives, execution and goals, financial plan, and operational expectations. State your business structure with concrete statistics to solidify your business plan. Consult Portfolio Management Groups to periodically revise your business plan and update your goals and objectives in line with any changes in the market or company.

Source Funding

Adequate financing gives your business an improved chance for survival through the first year. There are many financial channels you can use to start your business. As an entrepreneur, go for loans or financiers to set up your business. Decide whether to use your savings or pool your capital from friends and family.

Market Your Product

When you have a unique and new product in the market, let the consumers know what you want to offer. Use different marketing tools online and offline to generate a broad customer base.

Meet Business Regulations

Identify any legal requirements you need to set up your company. Get business licenses and authorizations in your field in Tampa. Look up any compulsory insurances to purchase. Register your company and prepare your business for takeoff.

Getting Your Startup Past the First Year

Follow this step-by-step process to ensure your business grows past the first year. Ensure you research and network with experienced people and old friends in the industry, work on a detailed business and financial plan, get the necessary documents, and advertise your product. Contact

Portfolio Management Groups

to get help on different aspects of your business idea or startup.

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THE BEST TECH-RELATED TASKS FOR OUTSOURCING

As a small business owner, you may want to consider taking advantage of outsourcing to help expand your reach. But what exactly should you outsource? Below, Portfolio Management Group discusses helpful tech-related tasks that can help your small business thrive, and which business formation structure is most suitable to you.

Helpful Software You Could Use Instead of Outsourcing

Accounting Software: This software can help you track your income and expenses, manage your accounts, and more.

Inventory Management Software: This is a helpful tool for businesses that handle lots of products or inventory.

CRM Software: This software is used by businesses to improve their customer service by tracking customer data, managing leads, and more.

Accounting Software

If you’re not outsourcing your accounting, there are some great services that allow you to do it online. These programs offer easy record-keeping, payroll, and invoicing. They can also help with taxes as they have all the tax forms and calculators built-in.

CRM Software

To help organize your business, there is a variety of CRM software you could use. This type of service helps you manage your customers and also keep track of your team. For example, it can be used to organize contact information, track customer interactions, monitor marketing campaigns, and much more.

It’s a good idea to look into a CRM software if you’re starting out on your own or if you want to be more efficient with the hiring process. It’s important to keep in mind that it can take time to master this type of software, so make sure you do some research before deciding which one is best for your business.

Forming Your Business

Forming your business is an important decision. This will determine how you are liable, what taxes your business pays, and other important details.

If you want to scale your business by hiring employees and taking on outside investors, then you’ll need a corporation as it provides some liability protection for the owner.

It’s also much easier to transfer shares in a corporation than LLC membership interests and established investors like corporations because they’re more predictable and have been around longer.

While you can do this work on your own, there are affordable services that make business formation faster and much easier. So rather than hiring a lawyer and paying expensive fees, these services file all the necessary paperwork to incorporate in your state, and provide you with the documents you need at the end of the process.

Sole Proprietor

A sole proprietor is the most common form of business structure. The owner of a sole proprietorship has unlimited personal liability for any claims against the company. A sole proprietorship is considered a pass-through entity for tax purposes, which means that the profits are not taxed at the business level.

When you file your taxes, any profit or loss from the business will be reported on your tax return, and you’ll pay income tax on that amount. Moreover, LLCs are ideal for entrepreneurs who want less paperwork to manage in their business venture.

Partnership

A partnership is a business where two or more people work together to make money. This could be in any profession. For example, you could be a partner in a law firm, real estate agency, catering company, or restaurant.

Marketing

Just because you have a great business idea doesn’t mean that you are an expert in marketing. There are plenty of consulting firms and services that can help you, whether it’s with your social media presence, commercials, or printed advertisements. Even in this digital age, fliers can be a great way to promote your goods or services. You can use a free online flier maker, which will allow you to both print and send digital versions of your promotional material.

It’s important to find a good balance between in house and outsourced work. Play to your strengths and your budget, and adapt as your business develops. The goal is to be the best for your employees and your customers, so be strategic about your choices and watch your business thrive.

It can be helpful to have an outside perspective on your business practices. But don’t trust just anyone for this outsourced role. The professionals at the Portfolio Management Group will do a customized assessment of your business and provide you with suggestions to help your business grow. Contact us for more information about how we can help you and your business grow.

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4 STRATEGIES IMMIGRANTS CAN USE TO START A SUCCESSFUL BUSINESS

Starting a business in a new country can often be risky, stressful, and even dangerous, yet a 2019 survey showed that immigrants make up almost 22% of the entrepreneurial population in the U.S. While the reasons for starting a business in an unfamiliar setting are varied, there’s no denying that the outcome has been successful for those who have found their niche. If you have a solid business idea and are ready to get started, it’s crucial to understand the steps involved in staying compliant with local and federal laws, finding the right funding, marketing to your target customer, and securing all the necessary documents.

Here are a few tasks you’ll need to tackle when you’re ready to get your startup off the ground, courtesy of Portfolio Management Group:

Get the Legalities Out of the Way

Starting a business of any kind in the U.S. requires the formation of a business structure, such as a limited liability company or sole proprietorship; this structure will inform your business practices and the way you pay your taxes. You’ll also need to create a unique name for your company, acquire a tax identification number, and register the business, which will pave the way for you to acquire a business license and open a professional bank account or business line of credit. Research your local laws to find out more about the requirements for business owners, as each state is different.

Write Out a Stellar Business Plan

Once you have all the legalities taken care of, you can write out a comprehensive business plan that will help you find funding. This plan should include all of the details, including your chosen structure, how many employees you’ll have, where your business will be located, what you’ll be selling, and what your financial projections are. Not only will this plan serve as a way to show potential investors or lenders what they can expect and why they should get on board, but it will also act as a guide for you and/or your partners during the first year.

Use the Best Tools

As you get started, it’s essential to ensure that you’re using the best tools for every task. This is made easy with online resources specifically aimed at small business owners, such as accounting software that will help you keep receipts and invoices organized while ensuring that you get the most tax deductions allowed at the end of the year. Not only that, an easy to use accounting system will give you insight into your cash flow in real-time so you can stay on top of all the money coming in and going out of your business.

Know the Rules

Even with the best tools and a great plan, running a small business can be challenging for immigrants. Overcoming language and culture barriers while also managing daily operations and remaining compliant with government requirements can be extremely difficult, but you can take a step toward protecting yourself by making sure you have the right visa. There are two different types available in the U.S. for entrepreneurs–the L-1 and E-2–so you’ll need to familiarize yourself with them both as well as the rules for qualification. It’s also a good idea to research small business funding options for immigrants; there may be federal or local grants available to help you turn your ideas into reality.

Starting a business in a new country can be overwhelming, but it doesn’t have to be stressful. Finding the right resources is a step in the right direction, and you can also look for support from other business owners who can help guide you toward success.

Portfolio Management Group is a small group of dedicated business professionals who use our proven expertise and background to find improvements and change that we know will improve business operations and sustain growth with profitability. Call 727-370-3080.

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Boosting Employee Engagement While Incorporating Digital Technology

As businesses incorporate an ever-increasing number of digital technologies into their day-to-day operations, some employees may feel less essential when some of their tasks are being taken over by machines. That feeling leads to decreased engagement and a more apathetic workforce. So how can you boost employee engagement while implementing new digital solutions to help your business grow? Here are four effective solutions you should take into consideration:

 Improve Team Communication When Implementing  Process Mining

When you optimize your workflow by implementing tools for process mining, you’re able to streamline, simplify, accelerate, and automate tasks, and this, in turn, makes your business more productive. Moreover, it normalizes data-driven decision-making while, at the same time, opening up opportunities for automation, cost savings, and risk reduction.

 But too often your employees aren’t involved in the optimization process, and they end up having to relearn how to perform their duties. If you don’t communicate with your team members about the need for improvement within your systems in order to increase ROI, they’ll be less than enthusiastic about having to be retrained and working on unfamiliar platforms. So make sure to share the “why” of your digital transformation with all the people that will be directly affected by those changes, as well as the benefits: These will go a long way toward getting better employee engagement.

 Organize Training Sessions and Reskill Your Workforce

When you introduce new digital solutions to increase productivity, engage your employees from the start by sharing your company goals and letting them know what role they’re playing in the success of the business. Organize training sessions that not only teach them how to use the new technologies you’re implementing, but how those changes can benefit your teams by eliminating repetitive actions and reducing the risk of human error; thus, increasing their own productivity. And make sure to check on your teams during and after implementation to get their feedback regarding practicality and usability, as well as to prevent potential issues from developing — catching and fixing bugs early on being much cheaper than the alternative.

 Allow for Flexibility in Your Employees’  Work Schedules

Thanks to the advent of new technologies such as CRM, ERP, and BPM, employees can have round-the-clock access to customer data, finance and accounting, sales order processing, purchasing and inventory, and a number of other applications. All that information gets updated in real-time, so your team members always have the latest data available on their computers and smart devices. This allows them the flexibility to work from any location where there is internet access, at any time of the day or night. As an employer, you’re sure to improve employee engagement and satisfaction when you let your employees select their working hours so that they can achieve better work-life balance.  

 Foster Teamwork and Collaboration Between Employees

When you’re implementing new digital solutions to increase business growth and productivity, think about investing in a communication platform where your teams will be able to gather, work collaboratively, and bounce ideas off each other. Instant messaging, video conferencing, file sharing, and other collaboration tools help people communicate in real-time, keeping your team members in the loop and on task when it comes to completing assignments. Being able to share calendars will keep employees aware of schedules, timelines, and deadlines, which is especially important when working on several projects simultaneously or managing a multi-phase project.

 By eliminating redundant tasks and preventing human error, digital technologies allow your employees to be more efficient and productive. So make sure to engage them in the implementation process by letting them know what’s at stake because growing your business should benefit your team members as well.  

 Ready to transform your business and take it to the next level? At pmg-consult.org, our mission is to help your company succeed! Call us today at 727-370-3080 for a free consultation.

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10-Point Checklist for Buying a Website

Buying an established website can save time and money and provide a fast return on investment.

However, a purchaser must be sure they know what they are getting. A website with a poor brand reputation, low-quality content, and toxic backlinks could be more trouble than it's worth. Here are ten things to check to ensure that the website you buy is a sound investment. Remember, these are only the initial, general things to check. Once you decide to move forward with a purchase, it is important to have a detailed due diligence plan.

 1. Domain Age and Ownership

The best place to start your due diligence before buying a website is with a Whois lookup, which will reveal the basic information about the domain. A Whois lookup will tell you when the web domain was first registered and the renewal date. The lookup will also reveal where the site is hosted and who owns the domain, but only if the registration is not private.

 2. Content Quality

If you plan to keep the content intact, it would be advisable to audit the quality of the existing content. You will likely want to amend the content to suit your purposes. And you may want to improve search engine optimization. Still, you probably don't want to rewrite every page. So it is best to proofread a sample of pages, check that keywords are not over-optimized, and run a few pages through a grammar checker to highlight mistakes.

 3. User Experience

It would also be a good idea to assess the useability of the site as it stands. A few improvements may not be a big issue, but a major overhaul will take time and cost money. One of the benefits of buying an established website is that you can hit the ground running. However, that will not be possible if the content needs rewriting, site navigation is poor, and the overall user experience is substandard.

 4. Proof of Income

If you are buying the website as a going concern, it will be best not to take the seller's word regarding projected income. Instead, ask for proof of prior income and assess the projected future income yourself. An eCommerce business will have accounts that the seller should be willing to share with you. If it is an affiliate marketing site, the seller will have commission statements or other evidence of earnings.

 5. Brand Reputation

It would help if you also looked off-site to assess the value of a website you are considering buying. Search for the site on review platforms, for example, to discover user comments and reviews. Researching brand mentions on social media will also give you an insight into the site's reputation. Online tools such as Falcon, Brand24, and Talkwalker will help you find and assess online brand mentions.

 6. Security Issues

Before you part with any money, it would be best to ask the seller for access to the site's Google Analytics and Search Console logins. Access to these analytics tools will provide a range of helpful information and help you identify any issues with the site. The search console, for example, will reveal if the site has any security issues raised by Google. You can further check the website's security with tools like Sucuri SiteCheck, which will show if the site is malware-infected or blacklisted by Google.

 7. Traffic Analysis

Existing traffic is a significant benefit of purchasing an existing website. The most straightforward way to assess traffic is Google Analytics. Google Analytics will also enable you to analyze the source of traffic, bounce rates, and the site's most visited pages. Tools like SEMRush will provide further traffic analysis and forecasting and enable you to conduct an SEO audit of the site.

 8. Website Ranking Metrics

You can use a range of website metrics to assess a site's ranking on search engines. These ranking metrics include Moz Domain Authority, Ahrefs Rank and Domain rating, and SEMrush Rank. Each of these indicators will provide a means of comparing the website you intend to buy with competitors and other similar sites.

9. Backlinks Profile

Backlinks play a crucial role in a website's search engine ranking. However, backlinks created by blackhat techniques, such as robots, are likely to have only a temporary benefit and may eventually lead to a site receiving a Google penalty. Therefore, it is advisable to check the backlinks before purchasing a website. Tools such as Ahrefs, Moz, and Majestic, will help you discover and analyze the backlinks pointing at a website you are considering purchasing.

 10. Keyword Ranking

You will probably hope to rank instantly for some keywords when you buy a website. However, it is best not to assume that because a site is relevant to a niche that it ranks for the profitable keywords. Instead, check the keywords the site is ranked for with the tools provided by SEMRush or Moz.

 Conclusion

The crucial point to take away from the above is not to rush into buying a website. Take your time reviewing the site and analyzing the metrics to ensure that it fits your purpose. If you don't do thorough due diligence, you could wind up with a site that requires as much or more effort as a new site.

 If you want to buy a website and need an operational or digital due diligence plan, contact Portfolio Management Group or email Craig Daley directly for a free consultation. We have the expertise and experienced people to ensure you are getting what you are paying for.

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Time to Sell Your Business? Here's 4 Signs

Does your business no longer feel like the "baby" it once did? Perhaps it's grown so much that you've decided to hand it off to someone better suited to handle the intricacies of a larger corporation, or maybe you just got a great offer. You might even want to sell it in order to retire.

Presented by Portfolio Management Group, the following guide discusses a few signs that it may be time to sell your business. 

1. You Hate Going to Work

This is a great indicator that it's time to quit your job — or, in your case, sell your business to someone who would enjoy running it. If you're tired of sticking it out in a field of work you no longer enjoy or you miss being an employee, it may be time to part ways.  Just make sure you’re not in a temporary slump or rushing into a hasty decision because of a bad week, month or quarter.

2. You Got an Offer You Can't Refuse

If your small business is performing extremely well, you may get an offer from a larger company to bring your business and staff on board. Offers like these don't often appear out of thin air, but if it works out this way for you, you could certainly consider selling and negotiating staying on board to run things (though not as the owner).

3. You Want to Retire 

If you've reached the end of your career, you may feel exhausted at the thought of spending another 10 or 20 years managing the business you built from scratch. Perhaps one of your adult children wants to take over, or maybe you've already got a buyer lined up. If you don't, experts recommend going through a business broker or trying to find a buyer through your network. 

4. You Want to Switch Careers

For those who no longer want to be business owners or entrepreneurs, selling a business is the practical option for starting over in a new field. Regardless of how well your business is doing, you may wish to make a change that's inspired by personal reasons. 

Preparing to Sell

·         First, you should determine how much you want to sell your business for. Do your research and compare similar ventures and how much they made during a recent sale. You may also find yourself in negotiations with a buyer: So do your due diligence with a company like us for smaller transactions and if it is a larger one, engage a company like Sellerplex and bring a lawyer aboard. Even if you are friends with the buyer, it's good to have a thorough contract drawn up.

·         Your business may need some cleanup.  Your operations may not be up to speed in terms of organizational structure, operating processes and overall efficiency.  Maybe you have poor accounting practices, a common small-business challenge. Or, it may just need some generalized review and internal re-organization.  All of these decrease your value and ultimately, your selling price. Hiring a firm like Portfolio Management Group will help you get your business health up to par in an economical manner.

·         If you don't have a buyer yet, organize your financial statements as well as your paperwork before you bring them to someone who may be interested in purchasing. The more information you can give them about the business and how it has performed during your tenure as CEO, the smoother the sale will go.

To make organizing paperwork easier, consider improving your invoicing process to make sure you and your team get paid quickly and make as many of your documents digital as possible. This will make it easier to gather information on your finances and compile data from different sources. Don't settle for less than ideal: Using an online program that generates invoices gives you the benefit of creating a customized invoice template that can include your logos and graphics as well.

Remember that you've decided to sell your business to make your life easier. Whether you are retiring, moving onto a new startup, or doing something else with your work hours, you will see success sooner if you develop a reasonable plan well in advance of selling your business.

Portfolio Management Group can assist businesses as they make important decisions. To learn how we can help you and your business, please get in touch by emailing Craig Daley directly for a free consultation.

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Best Cities To Visit and Live as a Solopreneur in 2022

Are you working as a solopreneur or gig-economy freelancer? With the right business, you could potentially work from anywhere. Whether you want to travel around or resettle in a new location, 2022 could be the year for new places and new adventures. Today, Portfolio Management Group offers the following suggestions on where you could visit or live while running your solo business.

 Seattle, WA

Seattle is primarily known for the Space Needle but there are lots of other famous sites like Pike Place Market, the Seattle Aquarium, and the Museum of Flight that draw in plenty of tourists.

 While Seattle is somewhat more expensive than the national average, there are still plenty of wonderful Seattle rental properties and you can search according to price range and amenities. Economically speaking, Seattle’s unemployment rate is lower than the national average, and its projected job growth is higher, making this the perfect destination for your new business!

 Atlanta, GA

Although the secret is out about Atlanta’s tech scene, it remains one of the most underutilized resources in the industry. The area’s universities have helped to attract a lot of tech businesses. Atlanta is one of the few cities with Google Fiber (offering excellent internet speeds and driving price competition). Additionally, there are a number of co-worker spaces, such as WeWork.

 According to Niche users, Atlanta is the 18th best city for young professionals in the U.S. There’s a lot to do and housing is relatively affordable compared to other tech hubs. Overall, this is a great place to live and work.

 Sacramento, CA

The capital of California is another great city to consider as a solopreneur. It may not be as obvious of a choice as the Bay Area, but it is much easier to find affordable housing to buy or rent in Sacramento.

 Sacramento has strong cultural and educational opportunities. Additionally, its residents enjoy the warm, pleasant climate of central California. If you want to enjoy mild winters and sunny summers every year, consider moving to Sacramento.

 Boston, MA

Alternatively, if you want an entrepreneurial hub that has very distinct seasons, consider the Boston area. The capital of Massachusetts is one of the major economic hubs of the country and students have enjoyed the benefits of its numerous prestigious universities for many years.

 Of all the cities on this list, Boston has the highest cost of living. However, it arguably also has the benefits to match. It has a strong cultural scene, a thriving entrepreneurship community and a very mature economy (meaning a lot of customers). Plus, it is the only city on this list to get consistent snow. There are a lot of reasons to consider Boston in 2022.

 Austin, TX

Austin may be the total opposite of Boston in many ways. It is in the southern-most state, it is an inland city and its economic “glowing up” has happened more recently. Without a doubt, Austin is a major tech center right now. It has been attracting a lot of businesses and residents that want to enjoy the lower costs associated with the Lone Star State.

 Additionally, it has a vibrant culture, beautiful natural scenery and the buzz associated that accompanies a booming economy. For solopreneurs, there is a lot to like about Austin. One study in 2021 found that Austin has the third-best quality of life of all U.S. cities. Certainly, individual experiences may vary, but every solopreneur should give Austin serious consideration.

 Continue Your Solopreneur Journey in a New City

The above four cities are some of the best places to visit and live if you are a solopreneur. One of the great aspects of being self-employed is that you have a lot of control over how and where you work. If you want to take your show on the road, these destinations may be right for you.

 Portfolio Management Group

is a small group of dedicated business professionals who use their proven expertise and background to improve business operations and sustain growth with profitability. Call 727-370-3080.

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Professional Accounting Services May Be Just What Your Business Needs

 There are few jobs more rewarding—and more challenging—than running your own business. Seeing your idea blossom from its inception is an incredible experience. However, sometimes you encounter roadblocks along the way that stop your company from reaching its fullest potential. Oftentimes, these roadblocks come down to—or could be avoided if not for—poor financial management.

That’s why professional accounting services may be the thing your business is missing. The right professional could help you come up with a plan that takes your business to the next level. Here, Portfolio Management Group explains what professional accounting services can do for you.

Help With Payroll Management

Paying your employees is a natural expense of running a business. However, because it’s such an ingrained part of the process, many business owners don’t give it the full thought it deserves. For example, you might have defaulted to paying your employees’ physical checks when you first got started. An accountant can help you find a trustworthy system you can use to submit paychecks direct deposit-style. This minimizes the chances of getting behind on your payroll schedule or having to make last-minute adjustments on paper check mistakes.

They can also help you figure out if your salary ranges are appropriate for your company. This is an area in which it’s easy to make mistakes either way. Go too low, and you’ll have trouble finding and keeping reliable employees. Too high, and you’ll drain your budget on roles that aren’t giving you the return on investment you need to thrive. Having an expert review your salary ranges can make sure you’re hitting the right balance.

Assess Your Cash Flow

When it comes to figuring out your business’s health, there are few things more useful than your cash flow statement. However, many business owners don’t have the know-how necessary to really make sense of their cash flow statements, or get the most out of them. An accountant can help bridge that gap. 

For example, a business owner might look at a cash flow statement, see profit, and look no further. An accountant would know to dig deeper to determine cash flow health. They can take a look at how much money is coming in, what sources it’s coming from (i.e., customers, investors, loans), and where it’s going (i.e., paying employees, taxes, repaying debt, saving for the future). These factors can go a long way toward helping you see whether or not your business is on track for long-term stability. If it’s in trouble, they can also help you come up with a plan to shift your cash flow away from outside sources and toward self-sustainability.

You may want to conduct audits of some of your service providers, like your credit card processor, in order to extract as much value from savings as possible. This process can be expedited by availing yourself to a banking service that offers an API to retrieve your bank account balance. This makes the auditing process go much smoother.

Simplify Tax Season

Finally, one of the most well-known and well-loved benefits of working with a professional accounting service is simplifying your life come tax season. Filing taxes is complicated enough for an individual. When you’re filing for a whole business, things can get overwhelming, fast. That’s why it’s so valuable to have a professional on hand who can help guide you through the process and figure out everything you need to do to get all the advantages available to you.

However, these benefits go well beyond tax season itself. Professional accounting services can also help you figure out how often you need to pay taxes throughout the year, keep you on track with deadlines, and keep tax information organized. They can also help you navigate tricky tax situations, such as managing traditional and contract employees simultaneously.

Dig In Yourself

Even when you’re working with an accountant, it’s important to understand the nuts and bolts of your bookkeeping, payroll and taxes to ensure you’re tuned into the financial health of your business. That’s why it’s wise to consider taking a few accounting courses to gain as much information as possible to help you make better business decisions. Online programs were created with busy professionals in mind, so learning accounting basics can be a self-paced endeavor that doesn’t infringe on your business responsibilities. Plus, you can help your accountant expedite the process when you handle certain elements.

There are few elements of business ownership that can make or break success quite like financial literacy. We hope this article helps you to see the benefits of having a professional accounting service on your side. The ability to turn to experts for advice might just make all the difference.

This article is brought to you by Portfolio Management Group, where we share our expertise and background with other companies and individuals because we enjoy seeing younger companies succeed. If we can be part of that success, then we have accomplished our mission. For more information, contact us today!

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Expanding Your Business the Healthy Way

Healthy companies tend to grow with time. Your small business may be thriving until your customer base reaches a point where you need to expand. That’s a good thing—as long as you do it strategically.

Many factors play into a successful expansion, and you don’t want to drop the ball halfway through your big transition. That’s why Portfolio Management Group has provided these critical considerations for any company that’s thinking about expanding:

 Don’t Sacrifice Quality

Growth is difficult, and one of your first temptations may be to lose sight of your product or service quality. Through each step of planning your expansion, prioritize the quality your customers are used to. Don’t take any steps or make any decisions that could compromise it.

 Prioritize Team Efficiency                          

If your expansion is going to be successful, you must keep your team working efficiently throughout the entire process. As a business owner, no one needs to tell you that efficiency helps you to keep the doors open and build your customer base. It also keeps your team members happy because they are not wasting time on pointless tasks.

If you work with a remote team, they must have the necessary tools to fulfill their roles and communicate with others in the company. For example, you can create a monthly planner template to equip your team with a 30-day view of individual and team task lists. You can even customize the template with sticky notes, videos, graphics, and other elements. This is one of the best tools on the market for helping remote and in-office teams complete projects and meet deadlines.

 Maintain Company Culture

Company culture is critical for any business. It significantly influences employee retention, engagement, recruiting, efficiency, and performance. A thriving culture will keep your employees happy, and it will in many ways determine your company’s growth and overall success. Similar to quality, you must not lose sight of your company culture as you expand.

 Go Through Your Options    

Have you considered all of your options rather than assuming you have to expand at this point? The last thing you want to do is rush into an expansion before you are ready. Explore all of your options and talk to as many people as possible to understand your business opportunities and industry.

You will also want to ensure that you have the financial health to take on an expansion. For instance, you will need the necessary cash flow to complete a big project for a new client. You will need to understand when you can reap ROI after investing in new equipment. And if you begin hiring new employees, you will need to ensure you can pay them.

 Know Your Strengths and Weaknesses   

Finally, know that every business has a breaking point and that you must monitor your organization's stress when navigating expansion. Boosting revenue, innovation, and customer diversification are critical for any company. But you will need to have a clear understanding of your limits as you make decisions going forward.

You should also consider your strengths as a company. Do you have a top-notch marketing department? Trusting your team to promote your brand heavily during expansion should be a priority. Do you have the best customer service reps in the industry? Lean on them to keep your customers happy during the big changes.

If you have realized it is time for your business to expand, you are in for an exciting adventure. But you must approach the process with a plan and strategy. Consider the tips above as you prepare your business for the next level, and don’t hesitate to connect with Portfolio Management Group for guidance on your business processes!

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6 Simple Steps for Getting Your Business Back in the Game

Setbacks in your business can be scary but don’t let them crush your entrepreneurial dreams for good. Instead, reassess and regroup making strategic moves toward the future you desire. Consider this list of steps from Portfolio Management Group for getting you and your business back on the path to success.

1. Know Your Strengths

When starting your business, there are many things that will come naturally to you. Maybe it’s product creation, or perhaps it’s interacting with customers and making business connections. Whatever you’re best at, that’s the thing you should be focusing your energy and time on, bestselling author Gary Keller suggests. Other aspects of the business you should outsource or delegate to others who are more suited to those areas.

 2. Develop Your Skills

In the competitive world of business, you should alway be striving to improve your knowledge and leadership skills. With a Master of Business Administration degree, you can develop skills in operations, management, and communication. If you enroll in an online program, you can start the coursework at a time of your choosing and balance work and family obligations.

 3. Outsource Important Functions

Payroll is an essential function that businesses need to be orderly and timely that is easily outsourced. Look for payroll services such as Gusto that have automatic payroll scheduling and automatic calculating and tax filing. Ideally, the service will also have mobile payroll options available on both Android and iOS so that you can manage payroll on the go.

 Accounting is another area where outsourcing to a professional can gain you big results. You may feel able to keep track of numbers, but accountants are trained to do much more than that. They’re experts in detecting financial trends, knowing where and how you can save or should spend, and giving you advice driven by data that is not always easy for an untrained person to disseminate into useful strategies.  

 Marketing online can be highly effective with the right data informing it, and social media has made it easier than ever to reach potential customers when used correctly. Hire a digital marketing manager to make sure your online efforts are reaching the right audiences with the message they need to hear to turn them into customers. 

 4. Make Your Website Experience Perfect

An appealing and functioning website is key to online business success. When a potential customer visits your website, they are assessing your business for competence, style and functionality. Your website is an extension of your product, so if it looks haphazard or is difficult to manage, customers will make similar assumptions about your products and services. Ensure that your website is streamlined and organized with easy-to-navigate sections, regardless of whether a customer is visiting on their phone or computer. If you aren’t confident in website management, delegate or outsource the job to a professional who can.

 5. Build Community Connections

Having the support of your community can go a long way in helping your business succeed. Consider joining your chamber of commerce or other local business organization to make connections with fellow entrepreneurs in your area. Not only can you learn a lot from those who have found success right where you live, but you can also use these relationships to build client confidence and get access to more customers through your collaborations.

 6. Streamline Your Home Office

These days, more and more businesses are existing mostly (or even entirely) online, which allows business owners to work from home. To stay on track, though, you really need a home office dedicated to work. Make that office as comfortable but efficient as possible, and make sure you separate your professional and personal duties. The good news is that renovations like this actually raise the value of your home, in addition to providing a dedicated workspace to help your business grow!

  You can come back from business setbacks and build the future you want with the right choices. And with over 25 years of expertise,

Portfolio Management Group

can help! Call 727-370-3080.

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Business Expenses Entrepreneurs Commonly Overlook

As a new entrepreneur, it’s easy to become overcome with excitement for the future. While being optimistic about your business idea is a good thing, letting it cloud you from the realities of the undertaking isn’t. Accidentally overlooking business expenses that typically come with launching a venture can be catastrophic, potentially causing your business to fail.

By learning about various costs, you can make sure they are on your radar. Here, Portfolio Management Group shares some business expenses new entrepreneurs commonly overlook.

Incorporation Costs

Depending one which entity you choose for your business, you get a range of benefits, including:

●        Lower tax rates

●        Flexibility in how you get paid

●        No personal responsibility for business debts

While the registration process is straightforward, many entrepreneurs overlook the cost. Generally, the costs will depend on which state you reside in; however, that might not be the only expense. If you use a business law attorney to handle your filing, you can expect to pay considerably more, especially for business law specialists.

If you want to avoid hefty attorney fees, you do have options. If you’re willing to do the research, handling it yourself could be on the table. However, going with a formation service is also a solid approach. You’ll get professional assistance along the way, ensuring everything is done correctly.

Permits and Licenses

Along with incorporation costs, many entrepreneurs will need to secure specific permits or licenses to operate. How much those will cost vary depending on the nature of your business and your location.

You also need to factor in the initial cost as well as plan for future renewals. That way, you’ll always be ready to cover this critical business expense.

Business Insurance

While business insurance isn’t mandatory for all business types, having this kind of protection is essential. It’ll help manage expenses relating to unexpected events, including lawsuits or similar claims that might threaten your company’s survival.

Additionally, some entrepreneurs may be required to get it. For example, accountants have to have professional liability insurance, and they aren’t the only ones subject to this kind of requirement.

Small business insurance is usually pretty affordable. However, if you overlook the expense, you may fail to maintain your policy, something that can lead to headaches later.

Website Hosting and Domain Names

Some entrepreneurs assume that getting a company website up and running is mainly a one-time cost. However, that isn’t the case.

Since most companies aren’t operating their own web server, website hosting is an ongoing expense entrepreneurs need to shoulder. Otherwise, the site won’t have a place to “live,” making it inaccessible.

Similarly, a domain name isn’t a one-time cost. Technically, domain names aren’t purchased; they’re rented. If you fail to resecure your domain name when the initial contract expires, it becomes available to others. As a result, someone else can scoop up your domain name and use it for their own site, sell it to a competitor, or offer to sell it back to you for an inflated price.

Securing your website hosting and domain isn’t usually very expensive. Still, if you overlook this expense, it can be catastrophic.

Home Business Expenses

While it’s true that you can save on costs when you operate your business out of your home, it’s important to realize that you’ll still have to pay for office-related expenses. This can include superior internet service, an extra phone line, and furniture that maximizes your productivity. If you need an office chair, for example, there are many budget options available, but be sure to prioritize chairs with lumbar support and adjustability.

Optimism can carry entrepreneurs a long way toward finding success, but you need to be realistic about your business expenses. With the tips above, you can prepare for future expenses and meet your business goals.

Portfolio Management Group consultants can help your business overcome challenges with outside-the-box thinking. Call 727-370-3080 to schedule a no-cost consultation!

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Looking To Hire for Your Small Business? Learn How To Recruit Immigrants

Many small business owners in America underestimate the power of the immigrant workforce. Immigrants have already made sacrifices to move to another country, often with the sole goal of making a better life for themselves and their families. This makes them adaptable, motivated, and hard-working. Plus, contrary to popular belief, research shows that immigrant workers actually boost the economy, so investing in immigrant recruitment can help the economy while also diversifying your staff. Having employees from a variety of cultural and ethnic backgrounds increases the number of different perspectives you can pull from, allowing you to run and grow your business more effectively. Use the following strategies to effectively recruit immigrants for your small business, which are presented below by Portfolio Management Group.

Legally Hire Workers

When hiring an immigrant worker, you may have to take extra steps to ensure that you are employing them legally. First, you should work with the Department of Labor to gain certification for working with foreign employees. The types of certifications you need are based on the type of work visa program you are applying for, which depends on job type, length of employment, and American relations with the immigrant's original country. Then, once hired, you need to verify the individual's employment eligibility via an I-9 form within three days of hire.

Advertise Without Discriminating

When advertising an open position, businesses often make the mistake of using language that may seem discriminatory to an immigrant. If you want to encourage immigrant recruitment, avoid discriminatory language such as "Only U.S. citizens" or indicating that proof of certain documentation is required as part of the application. Using such phasing also puts you at risk of violating discrimination laws.

Make Your Business Bilingual

Often, an immigrant's native language isn't English. However, making accommodations for a language barrier not only gives immigrants the opportunity to join the workforce comfortably but increases your business's ability to operate. Foreign knowledge is an essential piece of any business's plan to expand. What’s more, having a team composed of people who know and understand a target culture can be invaluable.

Adjust Your Company Culture

Company culture is important for the long-term health of a business. Creating it at the business's inception can be easy, but making adjustments to an established culture can be difficult. If you're thinking of recruiting immigrants, you should make sure that your company's values emphasize inclusivity. The earlier you start exemplifying this concept, the better, as proper company culture requires all employees to actively participate in the company's values. Without investing the time, contrasting or unclear cultures could clash.

Hire Remote Workers

You don't always have to hire workers for your primary location. Some tasks can be conducted remotely by workers from abroad. Establishing payroll can be tricky, though, and you want to ensure that your overseas employees are being paid legally and that your business isn't losing money to associated taxes and currency fluctuations. Most platforms and international wire transfers may not be financially feasible in the long run, but if you want something reliable and affordable, try a money transfer service like Remitly. If you’re sending money to employees in Brazil, for example, you can send money to them in minutes for as little as $5.99.

 Immigrants generally come to the States looking for work, and providing them with opportunities to show their worth is the best way to recruit them. If you're a small business owner, consider tapping into this lucrative market to staff your company.

 "Naomi Johnson created lifebasedbusiness.net for small business owners, creatives, solopreneurs, boss babes and bros, and side hustlers who are committed to designing their careers to accomodate how they want to live, instead of the other way around. Through her site, Naomi offers practical advice and inspiration to help others adopt the life-based business mentality and change their lives in immensely positive, fulfilling ways."

 Portfolio Management Group can help you discover the best ways to hire great employees. Get in contact with us today for a free consultation. Call 727-370-3080.

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New year, new business: Mistakes to avoid when starting a business

2022 is the year you’re finally going to fulfill your dream of launching your own business or proactively growing the one you already have. It’s an exciting time, full of promise and possibilities.

Unfortunately, there are also some pitfalls. The U.S. Bureau of Labor Statistics reports that approximately 20 percent of new businesses fail during the first two years. Initial expenses can also be a daunting factor. Depending on your enterprise, you may need to invest several thousand dollars before you ever open your physical or virtual doors.

Don’t be dissuaded, though. There are many benefits to having your own business, from overseeing your schedule and maintaining independence to unlimited financial rewards and the opportunity to be innovative in your field.

With the right strategy, you can overcome the challenges that trip up many new business owners, including funding and organization issues. It’s also critical to manage your finances correctly and consistently.

4 mistakes to avoid when starting a small business

As the old axiom goes, knowledge is power. By understanding the most common errors made by other entrepreneurs, you can take action to avoid them. Here are the top four mistakes that drag new small-business owners down.

1. Neglecting to make a business or marketing plan

You may have a groundbreaking service or product, but it won’t matter unless others know about it. And word-of-mouth won’t cut it for most businesses. One of the first things you need to do is develop a business plan with marketing in mind.

Researching where your clients or customers hang out online is key, says Dequiana Jackson, a small-business marketing strategist and CEO of Inspired Marketing. Know where they’re posting, engaging and sharing so you can create meaningful content that’s not just compelling, but also reaches them on the right platforms.

“If your company is B2B, it’s possible your clients are on LinkedIn looking for tips on growing their small businesses,” says Jackson. “If you have a products-based company, your customers may be on TikTok and YouTube looking for product tutorials.”

Be sure to conduct market research, too, to identify what gaps exist in your industry. Uber, for example, entered the market when there were already multiple transportation options. But it addressed the fact that there was no easy way to order on-demand transportation services. Uber filled that gap.

“Even in less innovative businesses, you can create a competitive advantage,” says Jackson. “Perhaps the norm for getting a product in the hands of customers is six weeks, and your business has systems in place to cut that time down to three weeks. That’s an advantage customers will appreciate. Enhanced customer service is also an easy win for small businesses that can offer a more personalized shopping experience, like special packaging and handwritten thank you notes.”

A business plan that incorporates marketing will help you and your team because it provides clear direction. “You go in knowing your target market, the products and services you want to offer them and the competitive advantage that will help close the sale,” says Jackson. “It saves money because you can focus your advertising efforts only in arenas where you know your ideal clients will be receptive. Your marketing plan should also help define your brand, the way you show up in the market to your customers.”

2. Trying to do everything yourself

There’s a time to DIY and a time to delegate. Be sure to respect the difference. Hiring people to assume duties you can’t reasonably handle will be money well spent, says Neale Godfrey, small-business consultant and author of “Money Doesn’t Grow on Trees.”

“You have to accept that you are not an expert in everything,” says Godfrey. “A lot of businesses fail because the entrepreneur is not willing to give up the reins to other people who may do it better. Yes, it’s your idea, your baby, and you’re protective about it. However, bringing experts on board will free you up so you can do what you do best.”

By delegating responsibilities to trusted staff or consultants, you will have more opportunities to focus on your product or service. Having a team that will work on your mission will not just provide you with valuable insight and assistance, but you will enjoy the flexibility to take a break, step back and develop ideas.

This doesn’t mean you completely surrender control. If you hire a designer to help with the look of your café, or a developer for your website, maintain regular involvement. If they take too much liberty, the project can spin into something you don’t want. You always have the final say. Remember, your name and finances are on the line, not theirs.

3. Ignoring the paperwork

As wonderful as it would be to simply hang out your shingle and announce you’re open for business, you do have to follow the proper protocol. Plenty of small-business owners get into hot water because they didn’t submit the proper documentation. Essential paperwork includes:

Permits and licenses. There are specific licenses or permits your business may need to start up, and you can find them at the Small Business Administration. Contact the SBA if you have any questions.

Business structure. If your staff is a party of one, you may be a sole proprietor and stay that way. Or you may launch as a more formal company. “The most simplistic business structure, in the beginning, will usually be best,” says Godfrey. “For many, that means starting as an LLC to protect your personal assets.”

State and federal tax IDs. An Employer Identification Number (EIN) is similar to a Social Security number, but is specifically for your company so you can pay state and federal taxes. If you’re a sole proprietor, you will not need an EIN and can use your Social Security number instead.

Business name. Once you know what you want your company to be called (and have made sure it’s not already taken), you’ll need to register it with the state in which you’re conducting business and possibly with the federal government.

Business bank account. You want to avoid mixing your personal and business finances, so open a designated business bank account. It will also help you manage your taxes. You’ll need your personal identification and that of any co-owners who have more than a 25 percent stake, the company’s EIN (if you have one) and the name and address of your business. You’ll also need to list the legal structure of your business.

Health insurance requirements. Small businesses with fewer than 50 employees aren’t required to offer health insurance, but if you plan to grow quickly, be prepared.

4. Not having a budget

And then there’s cash and credit. Zainep Mahmoud, senior business director at Capital One, stresses the importance of creating a business budget for current and projected expenses. “Budgeting early and often is a critical practice to manage cash flow,” says Mahmoud. “Positive cash flow is what keeps a business afloat and drives growth.”

Creating a budget in advance will help you identify how much money you will need to meet such financial commitments as payroll, rent and inventory. With the unpredictability of today’s economic landscape, you will want to plan for several different potential scenarios. This way you will have backup plans and budgets fleshed out ahead of time.

To manage short-term costs, get a business credit card. Not only are they safe and convenient payment tools, but they are also specifically designed with the small-business owner in mind. They tend to have large credit limits, and you can buy what you need without using up all your capital. Plus, you can pay over time if necessary.

The perks, rewards and benefits are different from what a personal card offers, too.  “Using a business credit card as the primary purchasing solution for business expenses like inventory, equipment, software, advertising and shipping could mean thousands of dollars back to your business in the form of rewards,” says Mahmoud. When cash is tight in the beginning phases of your business, rewards that you can reinvest will offer some financial relief.

To keep everything in order, consider investing in accounting software such as QuickBooks or FreshBooks. However, do not hesitate to hire an accountant if you’re out of your depth. “If you struggle at all or simply don’t have the time to dedicate to managing your finances and sticking to a budget, that’s a sign to bring on an expert,” says Mahmoud.

The bottom line

Starting your own business can be an exciting yet stressful experience. You’re going to make your own mistakes, but it’s also great to learn from the mistakes of others before you make them.

submitted by Portfolio Management Group as a reader service

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The Top Ways to Maximize Your Small Business Cash Flow

No matter what industry your business is in, cash is important. Having sufficient cash on hand to cover your expenses is essential. To ensure this, you will likely want to improve your cash flow. There are many factors that can impact cash flow, thus there are many ways to enhance it. The following suggestions from Portfolio Management Group that can help almost all businesses.

Get Really Good at Keeping Records

Bookkeeping is an essential part of running any business efficiently. Even if you aren’t a master of finance and accounting, it is a good idea to familiarize yourself with the basics and consider hiring an accountant (even if it is an outside contractor).

Having good records and reconciling your actual income and spending against your projections can help you to catch unplanned expenses or underperforming revenue quickly. Many cash flow problems only become serious issues because they go unnoticed.

Work on Shortening Your Accounts Receivable Collection

The amount of time it takes you to collect on invoices can have a big impact on your cash flow. Working to improve your accounts receivable timeline is a great option. For example, you could offer your customers a discount for paying early. Additionally, you could create a process that ensures you follow up to collect prompt payment. Sometimes slow-paying customers only take their time because they are busy with other matters.

Cut Unnecessary Expenses

Just like you may tighten your personal budget to save extra money, you can do the same for your business. Some common unnecessary expenses include excessive food and travel costs, inefficient equipment, unnecessary business software, and bank fees due to poor money management.

You may be surprised by how much cash you can make available simply by being more diligent with your expenses. An expense tracking app may help you to stay on top of it all.

Another common expense is your taxes. You may be spending too much, particularly if you have your business organized as the wrong type of entity. Consider switching to a limited liability company to enjoy the tax benefits of a partnership with extra liability protection.

Don’t Leave Supplies or Money Sitting Around

Make sure your assets are working for you. You should make sure your cash is earning money by either putting it in a high-yield savings account or even actively investing it. Similarly, you don’t want to have supplies and other assets sitting around your business. Consider adopting a leaner model (such as just-in-time inventory) to help you cut costs.  Remember, inventory is dollars sitting on the shelf!

Invest in Cybersecurity

A cyberattack can easily snuff out a small business in the blink of an eye. And with cybercriminals continuing to target small businesses, it’s not a matter of if anymore, it’s a matter of when you’ll be hit. An attack on your business could have a significant impact on your cash flow, not to mention your reputation. To ensure your business can manage a cyberattack, it’s absolutely critical to have a plan in place, and to work with dedicated cyber threat services. An IT security team can help ensure software is up to date, check on necessary patches, deploy the ideal protections, run regular tests, regularly back up your information and secure your IT infrastructure.

Use Debt Wisely

Some business owners are very hesitant to use debt or leases because they don’t want to be making monthly payments. However, this may be a mistake. The right financial products can help you to spread out costs and maximize your cash flow. For example, a line of credit can help to give you an extra cushion for your expenses. Similarly, leasing equipment can help you avoid major upfront expenses and eliminate the risk of owning obsolete, valueless equipment. 

Start Improving Your Cash Flow Today

Discover more about improving your cash flow today. With the above tips and a few other strategies, you could ensure that your business is a lean and efficient machine.

If you’re struggling with cash flow, contact Portfolio Management Group today for a no-cost, no-obligation consultation.  We will analyze your cash flow and build a custom plan to improve your cash position.