Female coffee shop owner taking order over the phone
Female coffee shop owner taking order over the phone

3 cashflow tips to help optimize your business [and relieve day-to-day stress]

As a small business owner, you are responsible for how your business runs on top of the day to day pressures that come with that responsibility – which means your work-life balance may fall by the wayside.

We get it, owning a business is a full-time commitment and then some. Nearly 1 in 4 entrepreneurs report working more than 60 hours a week.1 These long hours lead to the risk of burn out. That’s why it’s no surprise that 30% of entrepreneurs say they are often or constantly burnt out, and 64% say they are more stressed than two years ago.2

If you find yourself working overtime to compensate for cashflow deficits, you may not be getting that much needed personal time. So, where do you start? One key area is optimizing your business’s cashflow and capabilities. When your business has a stronger cashflow, you have more flexibility for how your prioritize your day-to-day operations. Bolstering your business’s capabilities can include implementing new technology, hiring key positions, automation of processes, or acquiring the necessary equipment.

There are multiple lending options that can help provide this support, which frees your time up to focus on more important tasks.

Achieve more flexibility for your business

Every business owner knows unexpected expenses are bound to happen. The first way to manage these scenarios is by creating room in your finances to have cash on hand for a rainy day. Having quick and easy access to funds offers a means of support for any emergency or worst-case-scenario. However, for newer businesses or businesses with razor-thin margins, saving can be difficult. A line of credit can help cover these costs and ensure business runs as smoothly as ever. It works by allowing you to draw money from a credit line established between you and your bank. With access to these funds, you don’t have to worry about the cost of emergency facility repairs, fixing a critical piece of equipment, or simply paying your employees on time.

When you don’t have to worry about cashflow management, you can focus on integrating balance. In fact, studies show a strong work-life balance can increase productivity by 21%.3 When your business runs smoothly, you can focus on your own personal success.

Free up your workload

You know your business inside and out – which makes it easy to take on more responsibility. After all, who could do the job better than you? If that sounds familiar, delegating may be your new best friend. By having your staff focus on time consuming tasks, you have the freedom to focus on bigger projects and growth.

Say you are a rapidly growing pest control company and you want to overhaul your website to make it easier to generate leads. You probably know all there is to know about controlling unwanted critters, but don’t know the first thing about building websites. Instead, you’d like to hire an outside company to create a stunning new site, but aren’t sure how to fund it.

A term loan allows you to borrow a one-time lump sum of cash with a fixed interest rate over a set period. For example, you could use a term loan to:

  • Buy a new building or space
  • Purchase equipment, machinery, or software
  • Cover upfront project or inventory costs
  • Refinance debt

Term loans aren’t the only business lending option out there. Whether your business just has seasonal needs, unexpected cashflow disruptions, or anything in between, a BizFlex line of credit from First Financial Bank can help support you. A BizFlex line of credit is more flexible than a term loan and allows you to borrow as much as you need, repay it, and even redraw from the line. You can secure funds of up to $100,000 and strategically draw money over a five-year period at a fixed rate, with no assets needed for collateral.* This type of unsecured lending allows you to tackle projects that may cost more (or even less) than your initial estimate and ensures you don’t finance more money than you need, saving your business money in unnecessary interest.

Make day-to-day expenses more convenient...and rewarding

When is the last time you thought about improving how you pay for day-to-day expenses? Are you using cash on hand for everything or are you funding expenses using a different method? A great way to bolster your cashflow while earning rewards is using a business credit card.

A business credit card is useful for tracking your spending, earning rewards, and saving money. Earning points for business-related spending, such as travel, gas, and merchandise, allows you to redeem rewards that may help pay for other business expenses. Every credit card company is different – one may have no annual fee, but a 4% balance transfer fee, and another may have an annual fee but better cash back. Look for the credit card that gives you the spending power your individual business needs.

For example, if your business requires frequent travel, a credit card that provides points and travel benefits like rental car coverage or discounted hotel rates may be the best option for you. Every time you put a business expense on the business credit card, you’ll accumulate points that typically don’t expire and can be used as needed for travel related needs.

There's no need to be a team of one

While it may be tempting to do it all, you will be better off in the long run if you spread out the work and prioritize your self-care. The responsibilities you put on yourself as an owner can be reduced with different lending options, and help you get back that much needed personal time. However, this is only one piece of the puzzle. It’s also important to hone your skills in delegating tasks and knowing when a project can wait until the next day so you don’t miss family dinner that night. Delegating effectively can be a game-changer for small business owners, freeing up your time and allowing your team to shine.

No matter what stage your business is in, here at First Financial Bank, we offer a variety of resources to help you optimize your business. Use our tools and templates if you’re looking for more information on business planning, understanding your cashflow, increasing net profit, and more. Your small business can reach its full potential, and you can find the perfect work-life balance.

Our team of lending professionals are here for you. We strive to help make the lending process as quick, easy, and transparent as possible by providing clear communication at every step. Add to that the personal service that comes from being a community bank and you can look forward to competitive rates and a smooth lending process, with local decision-makers who provide answers to your questions in plain language.

We want to help your business grow – start a conversation with a banker near you today.