4 key financial tips to grow a small business

What makes a small business successful? Thankfully for owners and entrepreneurs across the country, there are a number of correct answers to this very question.

Even so, many of them revolve around the monetary aspect of owning and operating a venture. Plenty of simple changes can add up to big rewards, and all it takes is a little motivation and determination to get started.

With that in mind, here are four key financial tips and tricks to get a small business headed in the right direction:

1. Keep a little extra cash in the bank
When it comes time to open an account, it may be wise to store some extra money just in case. Joshua Steimle, a contributor to Forbes, wrote that he keeps $1,000 in his bank at all times. This way, he has the peace of mind that if something does go wrong, he'll have a safety net in waiting. It also reduces the likelihood of a bounced check, which can lead to better working relationships with contractors and vendors.

2. Always find a way to be on time
Steimle added that business owners should always be on time for everything related to the company. This is one of the best habits a person can develop, as being perpetually late could cause friction with partners and clients. As a result, it may be harder to land that next deal. On the other hand, a person who is always slightly early could build better relationships with all of these important contacts. 

3. Don't be afraid to hire the inexperienced
While the next job applicant with the cushy resume could seem attractive, it may be better to hire the more inexperienced candidate. According to Steimle, a smart college graduate with a positive attitude can pay off bigger rewards in the end. Small businesses often have to make sacrifices with a light staff, but hiring fledgling professionals isn't one of them.

4. Make sure the right legal structure is in place
When first creating a small business, owners start out as a sole proprietorship, Bankrate.com explained. This has fewer upfront costs, but can carry added risk for those involved. On the other hand, it may be smart to set up a corporation. This offers some legal protection, and can cover the financial assets in the event of litigation. However, it depends on the direction of the business, its financial plan and the goals of the owner. These elements can often make the decision a bit more clear.

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