The first thing you want to do is write everything down. There is no such thing as a bad idea in the planning stages. It might even be in your best interest to carry around a small notepad and pencil, so you can write ideas down no matter where you are. You can even write things down or talk them out on your smartphone. You do not want to find yourself in a situation where you come up with a genius idea, but you forget it the next day and have not written it somewhere.

Another good idea for building your small business is to talk it out with others. It is recommended that you network and talk with other business owners so that you can obtain insight from people who have gone through the same thing you are experiencing. However, you can also talk with people who are not entrepreneurs at all. Talk with friends and family members to see if they have any insights. Someone else could provide you with insight you would not have gotten on your own.

If you are trying to come up with business ideas, it is also prudent to look into market trends. Some items are hot right now, but it is not going to last into next year. You might assume something is popular only to discover the complete opposite. You can do research online, but you can conduct your very own market research by interviewing people. You can pay people off the street for their opinions. Again, sometimes the best people to ask are your family and friends.

That perfect idea for a small business is out there. You just need to put in the work to find it. It takes months or even years for some entrepreneurs to get their new company off the ground, so never feel disheartened if it is taking you a little while to create a great business.

One area that you should really do some research is mobile payments. This is when customers have their payment information located on their smartphones. The phone is placed next to a near field communication device, and the payment is processed. This is gaining popularity because everyone carries their smartphones in their pockets at all times anyway. It allows people to not have to worry about forgetting their wallet or credit cards. The most popular form of mobile payment is Apple Pay. While some technical difficulties still need to be worked out, 2017 is bound to be a standout year for this technology.

Other payment trends are out there, including an increase in subscription services. In the past, stores would sell a product, a customer would buy it and then the customer would then own the product. Now in an attempt to save money, more people are looking toward a rental or leasing model. You can look at something such as Netflix as adopting the subscription model. This method will not work for every single company, but it is worth thinking about.

Mobile ordering is another method that is worth looking into. This trend is popping up everywhere due to the fact that, again, people have their smartphones all the time. This trend is getting particularly popular with restaurants. A death knell for many restaurants is that they cannot provide timely service to patrons. Basically, customers can order something directly from their phone before they actually arrive at the restaurant. The establishment can then make the food and let the customer know when it is ready. The customer can arrive and pick up the food directly from the counter, and everyone is happy.

The reason why you want to look at all the payment trends gaining popularity out there is that it is essential for every business, no matter how big or small, to provide exceptional customer service. 2017 can be a landmark year for your business as long as you consider every option in front of you.

Write it Down

The first step that you need to take is to get something down on paper. Getting ideas from your mind to paper can be a great way of sorting them out. This way you can figure out any gaps in your sales pitch. Make sure that you’re explaining the benefits that your company provides and that you’re opening the door for more conversation. You don’t want the pitch to end the discussion.

Ask for Suggestions

As a small business, you don’t have to work on your pitch alone. If you have a good idea for an elevator pitch, ask for someone to critique it or to give you input on how to make it better. Feedback often leads to improvement. The worst mistake that you could make is to work on it alone. Your peers may see things that you missed.

Create a Proposition

As you start to work on your elevator pitch, make sure that it addresses a problem that your target customer might face. The point of the pitch is to make sure that they can see your value. You can do this by making sure that your business can solve a problem that your target audience might have.

Be Natural

Don’t let your elevator pitch sound too formal. Make sure that it sounds professional but keep in mind that people are more likely to trust you if you don’t sound robotic or too rehearsed.

Practice

The one way to protect your elevator pitch for a small business is to practice it as much as you can. It might look short and easy to remember, but if you don’t practice, you may catch yourself forgetting it when you need it the most. Practicing helps you get an idea of what to say, how it sounds, and whether or not it’s the right length.

When it comes to the elevator pitch, it doesn’t have to be so daunting. With a few steps, you could be on your way to a perfect pitch that your small business can stand by.

1. Paying No Attention to Your Credit Report

Your credit is your number one ally when it comes to getting funding, but it can also be your number one enemy. Sign up to receive monthly credit reports and review the documents carefully. Identify discrepancies or errors and dispute them immediately. Check your balances and payment history and reconcile them with your records.

Also, closely monitor your debt-to-credit or credit utilization ratio. This ratio shows lenders how much credit is available to you versus how much you actually borrow. The rule of thumb is to keep the ratio under 30 percent to demonstrate responsible borrowing.

2. Not Factoring Interest in the Total Cost

When you get funding, you typically are given your monthly interest rate and annual percentage rate. This is where one of the biggest financing mistakes occur. Instead of simply comparing the percentages with other rates on the market, calculate how much money you will owe at the end of the financing term. This calculation includes the amount borrowed, charges due to daily or monthly interest and charges due to annual interest. Depending on the funding type, you may also need to factor in the compounding effects of capitalized interest. When you see the total cost in print, you might consider alternative options or find ways to negotiate a lower rate.

Also, consider whether the interest is fixed or variable. Fixed rates do not change over the term of the loan, where variable rates change based on market trends.

3. Overlooking Additional Fees

Financing often comes with additional fees that seem insignificant but can accrue over time and add to the overall cost. Pay close attention to fees such as application, approval, processing, payoff, late payment and annual fees. Carefully read the terms to see if fees get rolled up in your principle balance and charged interest. You do not want interest capitalizing on fees.

Talk to a Financial Professional

When in doubt, chat with a professional about the most common financing mistakes and how to avoid them. Educate yourself on financing options so that you are better prepared to make positive decisions for your business.

A common insurance that you definitely need to acquire is general liability insurance. This assists you in the event your business faces a lawsuit. Someone could sue your company because they got injured on the premises. You could also be sued because of slander, false advertising claims and property damage. Regardless of whether these claims have any grounds, you will need to go to court, which is going to cost you. General liability insurance helps cover some of these legal costs.

There is also worker’s comp, which is an essential small business insurance policy to get. In the event an employee gets hurt while working at your business, worker’s comp will pay for medical bills and any other associated costs. This is mandatory in virtually every state, so to stay on the right side of the law, you will definitely need to get it.

Property insurance is vital. As you are planning your company’s budget, you should have enough stored away as a type of emergency fund. A common emergency many businesses have to deal with is damage to the property. The pipes can break, and you find yourself with a flood. Another possibility is a fire breaking out. Repairing these damages can cost a fortune and put you out of business. However, with a comprehensive property insurance plan in place, you are covered.

You need to get insurance for your personal vehicle, and if you drive a vehicle as part of your work, then it is essential you get insurance for that car, too. For example, pizza places need to insure vehicles because employees are going to take cars out for deliveries. In the event an accident occurs, you could be held liable, but auto insurance offers protection.

Although you hope you will never have to use your small business insurance policy, it is necessary you get it no matter what. You never want to find yourself in a situation where something happens and you have no way to pay for it. Look into insurance providers near you.

Financial planning is necessary for every business. Even the biggest companies in the world have people who plan the budget. However, it is even more important for smaller businesses. The reason is that larger businesses have more money coming in, so if something bad or unexpected occurs, then there is more protection. Smaller businesses do not have that luxury. If something happens and a small business loses a ton of money, then they could go under immediately.

One idea you should consider implementing for your small business financial planning strategy is to develop quarterly and yearly budgets. Most business owners focus on creating a yearly budget, so they have a sense of what is going to happen a year in the future. However, these plans often do not account for little bumps in the road that tend to happen from one month to the next. Both these budgets force you to focus both on your short-term and long-term goals.

By budgeting and forecasting, you know what projects are open to you in the future. Every business constantly needs to be looking toward expansion. You never want to be in a situation where you are content with where your company currently is. By analyzing how much your other expenses are and how much revenue you should be bringing in, you can accurately plan big-budget projects and know when you can get to work on them.

It is crucial while you are planning a budget that you make it as honest as possible. You want to ensure the amount you use for revenue is accurate to what you have brought in the past. It might take you a little while to get the hang of it, but once you get it down, it will become a breeze. You might not have the funds yet to hire someone to handle your small business financial planning, but you can easily figure out how to do it on your own. It just requires a little practice.

Cost Savings

This is one of the biggest reasons that business owners look into equipment leasing. Most people want to save some money here and there. When you’re running a business, your profit is important and the less money that you have to spend on equipment, the better. Financing equipment saves you from having to spend working capital. Also, you can pay in lower monthly installments that may help your business in the long run.

No Outdated Equipment

After a few years, most equipment becomes outdated. When you already purchased the equipment, this can turn into a problem. It will cost you a lot more money to replace your equipment so often. Most of the time, small businesses that don’t look into equipment leasing wind up having to spend more money on something new. When you’re renting, you can have a short-term lease or be allowed regular upgrades.

Building Credit

As a business, your credit line is still important. Sometimes you might not have to be using that credit line all that often and it can cause you to start losing it a little. When you finance equipment, your credit is always building and the line is always open. This helps you have a solid credit that you can utilize through the lifespan of your business. Keep in mind that credit is imperative to expand your business later on down the line. It also can help with operational expenses.

If you need equipment to run your business, then you aren’t going to go without either way. The options in front of you might seem like a difficult choice at first. A lot of people tend to think that buying is a safer option, but that’s not always the case. In fact, there are a lot of benefits to financing equipment that you don’t get from buying it with cash. Hopefully, these advantages have shown you how crucial the decision can be and how beneficial it is to go with leasing your equipment.

Remember the Basics

When you sit down to figure out your taxes, there’s one crucial element that will help you breeze through your small business taxes. This is keeping good records. The better your records, the easier it’s going to be for you and your accountant to figure out what to do next. Back up your records, also. Don’t simply throw them out when tax season is over. Expert opinion says that you should keep your records for up to seven years.

Check out Recent Legislation 

Every year, changes are made to the federal legislation that could affect your taxes. There are too many business owners that don’t keep this in mind when filing small business taxes. The truth is, this could cause them to lose out on a lot of money. Often, with a little research, you can find out any recent changes that have been made that may affect you and your business.

Avoid Audits 

No one wants to be audited by the IRS. Once this happens, it can be more than overwhelming and stressful. The best possible remedy is to not be audited in the first place. There are a couple of very common audit traps that people fall into. First, make sure that your employees are classified correctly. If you mistakenly classify your employees as independent contractors, you could face trouble. Additionally, many people will claim home office deductions when they don’t fit the criteria. Always make sure that you fit the criteria of what you’re filing for.

Filing small business taxes doesn’t have to be a huge chore. Most people sweat over filing taxes every year, but it doesn’t have to be the most difficult time of the year. After all, if you can keep up with your records all year long, you’ll have an easier time sorting through your financial documents. Keep in mind that you never want to claim anything mistakenly. Doing your research and being thorough makes all the difference.

It Is Easy to Set Up

There are plenty of third-party financing companies that can handle the billing details. All you have to do is choose a plan, pick your options and monitor the program. It is a relatively quick process to set up, and there is no maintenance to do on your end. Depending on the program, the company may not charge you a dime and simply pass down costs to your customers in the form of interest and normal financing fees.

There Are Few Risks

When you hire a third-party consumer financing company, you rid yourself of most of the risk. The financing company gives you money from the sale and is responsible for making sure the customer pays. You do not have to track down your customers, send out reminder notices or penalize your customers directly for late payments. The financing company handles all the grunt work so that you can continue running your business.

It Widens Your Market

Reluctant buyers who turn down sales to save cash are more likely to buy when they have financing options. They might also buy more since they can afford more over a longer period of time. You generally can expect to see an increase the number of orders received each month and an increase in the total amount for each order.

Types of Financing Options

The simplest way to offer financing is through 30-, 60- or 90-day plans. During this time, customers can spread out the cost of your product or service in scheduled installments. You might offer interest-free financing as an incentive for more customers to buy.

You can also offer to lease a product for a set time with monthly payments and interest, or provide a layaway service where you hold the product for a set time until the customer pays in full. In either case, you might require a down payment to secure the agreement.

How to Get Started

Talk to a financial advisor about setting up a consumer financing system that works well for your business model. Fully review the costs and terms before committing, and tell your marketing team to start incorporating financing options into your business ads.

Budget Realistically

No matter how much thought you put into your spending, unexpected expenses will arise and throw off your numbers. The worst thing you can do in this situation is to proceed as though nothing is wrong. You might need to borrow money or you may just be able to reallocate some funds. In any case, you have to be willing to adjust your budget as real life sets in.

Plan for Problems

This isn’t to say that you should be pessimistic about your cash flow. Instead, as you’re predicting where your dollars will be spent, take note of the times in which you may experience a shortage. Nothing disrupts a business like an unexpected lack of capital, so you should try to identify when your business might have a decreased capacity. If you recognize these problems with enough advance notice, you might be able to adjust spending and figure out a way to work around the insufficient funds.

Account for Every Expense

This is nearly impossible for most young entrepreneurs. As much thought as you give to inventory, payroll, utilities and taxes, there are still dozens of costs that you’ll likely overlook. That’s why you should do your best to think of all the things that might cost you money over the course of a given month and then still have extra cash set aside to cover the payments you forget about. You’ll eventually get better at forecasting, but plan on making mistakes in the early going.

Don’t Count Money Before Collecting

Your cash flow is reliant on actual cash; if you’re factoring money into your budget that hasn’t been received yet, you’re setting yourself up for failure. This means you should only budget the money that has actually been collected, and you should also be extremely diligent when it comes to collecting. Don’t let your clients carry outstanding balances that leave you unable to cover your expenses.

A healthy cash flow is the first indicator of a healthy business. If you’re meticulous in your budgeting and realistic in your financial planning, you should be able to keep this flow of capital from drying up.