eCommerce is growing by 23% year-over-year, which might explain the increase in entrepreneurs looking to break into the business while it is booming. Starting a business, especially one based entirely online, requires passion, dedication, and creativity in regards to advertising and other techniques. While there continue to be many innovations and changes in the eCommerce industry, these simple financial tips are evergreen and will ensure that your first leap into the world of internet sales is successful and financially secure.
Manage Your Finances From the Get-Go
Before even beginning to think about launching, it is important to think about your business finances, your personal finances, and your overall goals. Ensure that you have a concrete plan before beginning and learn how to manage your finances from the beginning. Right from the beginning, you should establish a system for organizing receipts and other important financial records in order to avoid costly mistakes down the road. This can also include employing the use of free budgeting apps that allow you to connect your credit cards and bank accounts in order to efficiently assess where your money is going. By being able to take a concise look at where your business is spending its money, you will be able to manage it more effectively.
Don’t Be Scared to Take Out a Loan
If you have a great eCommerce business plan and you are ready to go live but don’t have the working capital to do so, it can be a good idea to take out a loan. Crediful.com notes that the timeliness and consistency of your payment history on all debts account for 35% of your credit score, so you will need to be smart about the repayment terms of the loan as well as how you will repay it. However, there are many benefits to a loan for a budding new online business. For example, if you’re planning to apply for larger-scale financing for your business in the next few years, then it can be smart to build your business credit with smaller loans that are easier to repay back.
Streamline Your Tasks Without Employees
Give your small eCommerce business space and time to grow naturally by avoiding paying for anything you can do yourself. If you are smart about how you manage your time, you can learn how to design Instagram ads, write great ad copy and even SEO-optimize your website to avoid paying a contractor for the same work. While it can be smart to outsource certain tasks, there are undoubtedly things that you can do yourself. Focus on eliminating the need for employees by utilizing services such as Oberlo that cut out the middleman and provide small online entrepreneurs with all of the tools they need to stay competitive strategically and financially.
Remaining Realistic While Scaling Growth
If you believe that you have developed a business opportunity that outweighs the possibility of debt and need the capital to invest in a physical location, inventory or growth, then taking out a loan is a great way to get started. Be realistic about your finances and goals while also scaling your eCommerce business growth according to your needs and the needs of your growing customer base.