Whatever the size of your business, one of your 2023 goals is probably boosting its finances and accelerating its growth. In a post-pandemic world with an active European warzone, it can be quite difficult to know where that extra revenue can come from, with as little risk as possible.
Here are six ways to boost your finances in 2023 without having to resort to extreme measures.
Review Your Current Budget
Start by making a smarter business budget. Review the budget you created when you first started out (and possibly revised since), and understand exactly what all of your revenue streams and expenses are.
This is a very important first step, as it will allow you to identify where you can potentially cut costs and where the money for potential investments may come from. The goal is to know exactly what amounts are coming in, what is going out, and how much you need to reach your goals.
Review Your Current Expenses
You then want to take a look at your expenses specifically and see where you can cut down. If your budget is already very well optimized, you may discover there is very little room for improvement.
Take a look at your current vendors and see if you can work out a better price with them. Look at their competitors and what they may be able to offer. Consider changing banks, internet and phone providers, etc.
Also, take a look at the items you’re buying. Do you need that much paper? Can you lower the cost of coffee and snacks?
Note that you don’t want to impact the quality of your operations or make your office less enjoyable to work in. Don’t lower your standards to save a couple of bucks.
Find a Passive Income Stream
Look for a passive income source for your business. Is there something you can set up that will ensure money comes in but requires very little effort on your part? Here are some popular options:
- Create a digital product, like a course, an ebook, or a video that users will pay to access.
- Rent out some of your property.
- Sell your products on more marketplaces, like Amazon or Etsy.
Ideally, you want to invest in this revenue stream once (i.e., create a course, for example) and have very little to do with its marketing or promotion later on.
Invest in Stocks
Investing in stocks can be another great way to generate some extra money, especially if you choose something like penny stocks that come with nice potential upside.
Note that you can’t expect stocks to generate a large income and that it will take time for said income to amass. If you are in need of some immediate funds, this is not the best course of action. If you are looking to start generating some money now that you can use for growth in a couple of years’ time, stocks can be a great option.
Rethink Your Billing Strategy
Every business has customers who pay their invoices late. Instead of sending out payment reminders and asking them to pay sooner, set up a system where they will get a discount the sooner they pay.
Don’t make the discount too big, as your goal is to improve your cash flow, not to earn less money. This tactic should incentivize most of your clients to start paying their invoices sooner, so you will have more cash on hand to invest and grow.
Look for Outside Funding
There are many avenues for pursuing outside funding for your business.
For starters, you can pour some of your own savings. Or you can ask your friends and family for support. Make sure you are clear about what you’re asking and why. Most importantly, make it clear when you will pay back the loan or if you expect them to make a donation.
You can also look for loans from a bank or from an online loan provider. Make sure to read all the fine print and ensure you can comply with the proposed terms. Otherwise, you may land yourself in more trouble than you’d expected.
Crowdfunding is also a great option, especially if you are able to market your business well. It’s also a great tactic to reach new audiences and get more people interested in your product or service. Plus, since you are only asking for small amounts, more people will be likely to get involved, as it’s a small amount coming out of their pockets. Just make sure you offer them something valuable in return, like early or behind-the-scenes access.
Wrapping Up
Carefully consider the revenue streams you want to generate for your business this year. Make sure that you don’t inadvertently damage your current cash flow and that you can safely shoulder any potential risk involved.
