Online shops like Lazada, Shopee, and Amazon have made it easier to start and grow an online business. With lower start-up costs and greater flexibility compared to brick-and-mortar stores, online stores are becoming a popular way to run one’s own business. Before you click to register that new domain name, you need to consider ways you can manage your business, overhead and payments.
From raising capital to managing costs, here are some financial tips to help you grow a successful business.
The cost of starting and running your business depends on what you’re offering. You might also need to consider costs for email and social media marketing, creating a website, shipping and delivery.
To keep your starting expenses low, try renting instead of purchasing your equipment, and negotiate with vendors on price, grace periods and late payment penalties.
Manage your cash
For your business to thrive, it’s important to maintain a healthy balance between what you spend and what you make. You can do this by reducing debts and keeping fixed expenses low. Start building an emergency fund early, and track your cash flow so you can plan ahead on payments and expenses. If you’d like to learn about managing cash flow, see our tips here.
Arrange payment options
How will your customers pay you? How will you pay your employees, suppliers and bills? Depending on your business and partners, you might need more than one method of payment. Offering your customers their choice of payment method also makes it easier for them to do business with you, which makes them more likely to come back in the future.
If you’re not selling via an existing e-commerce site, you can consider bank transfers, credit and debit cards, or e-wallets, apps and third-party payment gateways. You also might want to set up a bank account just for your business, like a CIMB BusinessGo Current Account.
Look into insurance
It’s never too early to get protection for your business. Insurance can help if your business equipment gets damaged, or if your employees fall sick. It can even cover you if a customer cannot pay, or if your vendor does not deliver what they promised. CIMB’s partner insurance options can provide peace of mind while you focus on your business. Check them out here.
Interested in starting your own e-commerce business? Let us help.