Money Matters: 3 Business Milestones That Can Determine Future Success Like personal finances, the business milestones that prompt entrepreneurs to reevaluate financial resources come down to three key things

The only constant in life is change. We start tracking milestones from the moment we are born – first words, first steps, first day of school. While they become less frequent as we get older (marriage, first home, having children), the magnitude of our firsts changes and requires us to reassess our financial plans.

The same is true for business.

Entrepreneurs often track their milestones – first dollar made, first customer, first retail space and first hire. As the business grows, they're faced with a new set of challenges that carry greater risk, and finances become increasingly complex.

As in life, business milestones require owners to find new ways to balance their money in and money out. Of course, businesses aren't going to kindergarten or planning nuptials, but the events that signify it's time to level up financial processes come down to three key things.

People and Relationships

People-centric life moments involve growing a family through events like marriage, birth and adoption. For business owners, those moments often involve growing a team by adding a business partner, hiring new employees or inheriting all or part of a business.

The connection between happy employees and a healthy business has come into focus since the onset of the pandemic – and that isn't likely to end. In fact, 51% of small business owners anticipate hiring full-time employees in the year ahead, according to JPMorgan Chase's 2023 Business Leaders Outlook survey. Growing a team is a significant investment – annual pay raises are expected to increase, and evolving employee expectations mean business owners need to consider benefits like health insurance, flexible working hours and upskilling opportunities. But people – and relationships with those people – are an important part of doing business.

Business owners can use the cash back and rewards associated with their business credit card to offset expenses, fill cash flow gaps in other areas of the business and redirect funds to scale their team. They can also help boost employee morale through gift card purchases and instill trust with employee credit cards.

Strategic Investments

Building personal wealth often includes purchasing new assets like a home or car, while growing a business means investing in product inventory, research and development or retail/office space.

Inflationary pressures have created a challenging scenario for business owners, who have been incredibly resilient in overcoming the ebbs and flows of an uncertain economy. Many have been forced to choose between absorbing higher costs and passing on costs to consumers, both of which carry enormous risk when margins are under pressure.

A business credit card can help offset some of that pressure by providing fast, easy access to capital that business owners can use to pre-purchase inventory and acquire essential supplies. This enables the ability to lock into current, known margins and more confidently respond to new or unexpected purchase orders. The cash flow flexibility created by business credit cards – especially those that offer rich rewards and cash back opportunities – is hugely important because it empowers more reliable payments to vendors that could create opportunities for more favorable terms.

Smart Systems

Many business owners can get bogged down by the day-to-day minutiae of administrative tasks like billing and accounting, and business growth may plateau as a result. Smart systems like accounting software and customer relationship management (CRM) platforms, and value-added services like Chase Customer Insights, a business intelligence platform with analytics to make more informed business decisions, give entrepreneurs the gift of time.

Additionally, services like Chase for Business help create efficiencies by combining business credit, banking and payment solutions – which connects the dots on all the financial aspects of business. Chase's full portfolio of Chase Ink Business credit cards, including the new Chase Ink Business Premier credit card, play an important role in helping manage cash flow.

Nobody knows what's best for a business better than its owners. Chase for Business is here to help business owners unlock their best path forward when the time is right – whether through perks and rewards that allow them to reinvest in themselves and their business, or by freeing up time through efficient systems that allow them to focus on the big picture.

When entrepreneurs are immersed in the day-to-day of their business, it can be hard to take a step back and realize when those moments present themselves. Leveraging available tools, teams and products – like the ones mentioned here – helps owners make more informed decisions to take their business to the next level.

For more information on Chase Ink, click here.

Credit cards are issued by JPMorgan Chase Bank, N.A. Member FDIC. Accounts subject to credit approval. Restrictions and limitations apply.

This article is written by Jenny Shum, General Manager, Chase Ink