As your commercial mortgage broker that cares, we want you to have a good handle on your finances. Unfortunately, many entrepreneurs don’t understand how to keep their finances manageable. Here’s a few tips so you can keep this all-important aspect of your business in line.
It’s critical for small businesses to know when trouble is coming before it arrives. Being able to make predictions and projections for months ahead of time is critical. Understanding how these levers work helps you to decide when you need money for day-to-day operations and projects.
One of the first things you should look at is your strategic plan. Sit down with the instrumental people in your business and decide what you want to accomplish. After that, you look at the financial impact over the next 12 months together.
Next you’ll need to tie the strategic plans to some financial projections. Putting sales forecasts against expenses like labour costs helps you to get a clear picture. Keep in mind that if you have a very tight budget, it’s possible to make these projections weekly.
As your professional commercial mortgage broker, we understand how money and business work together. Once you have a series of financial projections ready to go, your business will start to look at financing. Projections that are well prepared stand the best chance of being accepted by lending institutions.
Plan for the Unexpected
Business experts all say that you should plan for unexpected contingencies. Generally, that means having an emergency fund stashed away somewhere. Having a cash reserve or some money in reserve on a line of credit are good options as well. When you’re looking to acquire a property to start a business, our commercial mortgage broker service can help.