A recent article in Forbes magazine covered 5 tips for business owners.
The tips are obvious but these tend to be the ones that are often neglected in the rush to expand the business.
- Have an emergency fund – you need to have enough to pay your personal bills if you cant be paid from the business. It could be losing a key customer or them paying late or could be during a seasonal downturn. Knowing that you have enough to cover your bills for a few months will help you focus on your business and make more confident decisions.
- Manage your personal credit – Credit is the lifeblood of a small business, and you need to make sure your personal credit is also solid. Pay your bills on time. Even if money is tight and you can only afford to make a minimum payment on a credit card, it’s better to do that than to miss a payment or pay late. A new business will rely on owners for funding until established and is able to generate.
- Save for retirement – most owners will put any spare funds into the business to sustain it and help it grow. That could be at risk to any future retirement plans. You don’t need to put every penny away, just have a plan to put some away. The ability to draw down from your pension pot means that its not locked away until retirement.
- Manage any savings – consider your personal and business needs and invest in a range of options that will enable easy cash release if needed plus others that may lock funds away but give a better return.
Take professional advice – this applies to your business as well as personal finances. Don’t be embarrassed to seek help when problems arise or to give assurance for a path of action. Sometimes an impartial view may highlight a profitable way forward or may save your business
Harrisons Business Rescue are experienced in helping business when they are growing as well as in times of trouble and can assist owners find solutions that work for them
The full article can be found here