Too many small business owners set up their financial services providers and pay them off every month without thinking about potential alternatives. While many banks set up all-encompassing services for small business owners, there may be some better options that can help small business owners save money in the long run. This goes back to the strategic planning process, in which small business owners must implement reflection periods during which they can explore money-saving opportunities.
"Too many small business owners don't check to find out if a cheaper service is available," Bill Cheney, CEO of the Credit Union National Association, told Inc. magazine. "Too many don't push established vendors – of all kinds – on costs."
Here are a few potential options small business owners can look at if they are spending too much money at their banks.
Credit unions
"Credit unions are not-for-profit cooperatives so they tend to offer better deals and establish better relationships with their members," Cheney told the magazine.
This is exactly what small business owners need, a place where they can save money but also receive services to help them with their finances. Credit unions often provide small business owners with the opportunity to pay no monthly checking fees, no annual credit card fees and lower their merchant account and credit card processing fees.
"Members can sometimes qualify for a loan a bank did not approve," Cheney told the source. "Many credit unions also make the process of switching easier by extending no-interest or low-interest loans."
Budgeting software
Instead of relying on banks or credit unions to manage their finances, small business owners can purchase budgeting software. Software solutions often allow small business owners to save time and money while budgeting and financial planning.
Many times creating financial statements such as an income statements, balance sheets and statements of cash flow can be taxing and consume too much of a small business owner's time. Effectively using budgeting software may be able to expedite these processes, freeing up small business owners to take care of other pressing tasks.
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