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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 – a leading Vehicle and Asset Finance provider and part of one of the largest financial services groups in Africa. WesBank is a division of FirstRand Bank Limited.
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