Content provided by a guest contributor.
Every business is designed to earn money: for profit and survival. By definition, it’s an attempt to obtain compensation for services so that we can continue or begin living comfortably. But sometimes we need to find a way to make money quickly to help the business survive: anything can happen and that means being prepared. So with that in mind, we should consider interventions that can help us succeed through a difficult patch.
The most important way is to begin saving and to begin saving early. Thus, consider what you will be spending profits on. This could mean even engaging in personal saving options that can benefit the business, as a business owner (that is, using your personal savings account should the situation call for it).
There are many ways you can save and save simply, as sites like The Simple Dollar demonstrate. Focusing on personal actions, as a business owner, means a general saving that could impact your business. Thus, you should start from home.
“One big way to save money is to drastically cut down on the amount of television you watch. There are a lot of financial benefits to this: less exposure to spending-inducing ads, a lower electric bill (and perhaps a lower cable bill if you downgrade your subscription), more time to focus on other things in life — such as a side business — and so on.”
In terms of actual business saving, there are a multitude of ideas that we should consider. For example, consider independent contractors instead of employed ones; buy second-hand equipment instead of brand new ones, especially if it’s for things that you may not use all the time or that actually require high quality outcomes (do you need the latest printer, for example, when everything is becoming digital?).
You should consider also how you’ll pay for such equipment with options like asset finance. This could save you in the immediate term, since it could allow for better management of your finances.
Also consider insurance properly. As Entrepreneur.com notes:
“Buying appropriate insurance upfront saves money in the long run, says Jeanne Salvatore of the Insurance Information Institute , a nonprofit organization in New York City. Consider what situations would be catastrophic to your business and protect yourself with adequate insurance. "Disaster recovery," says Salvatore, "is one area where business owners shouldn't scrimp."
These are just some of the many ways to save and be smart about your money while running a business.
The content in this article was provided by WesBank, who provide various options for asset finance to help your business grow.
With over 40 years' experience in the industry, WesBank is a leading Vehicle and Asset Finance provider and part of one of the largest financial services groups in Africa. WesBank is the partner of choice for over 60 leading international brands including automotive OEMs, insurance providers and oil companies.
We focus on providing secured instalment finance to the retail and public sectors and corporate markets, together with a range of related services including insurance, fleet management and full maintenance lease.
WesBank is a division of FirstRand Bank Limited, South Africa's most innovative bank and the second largest listed banking group (by market capitalisation) on the JSE. The group is differentiated by its owner-manager culture and operates through a portfolio of four separately branded franchises:
- Instalment finance through WesBank, one of Africa's top vehicle and asset finance providers by market share
- Retail, commercial and wholesale banking through First National Bank (FNB), one of Africa's largest retail, commercial and wholesale banks by assets
- Investment banking by Rand Merchant Bank (RMB), one of Africa's leading investment banks by peer ranking and industry awards
- Investment management by Ashburton Investments, offering traditional and alternative investment products
For more information, contact:
Tel: 0861 922 677