The Best Money Management Tips for Small Business Owners from Freedom Debt Relief
2 weeks ago admin Comments Off on The Best Money Management Tips for Small Business Owners from Freedom Debt Relief
If you’re a small business owner, chances are that you’re always searching for ways to cut costs, reduce your spending, and increase your profits. And you’d be right to do so- financial data for small businesses are not on the side of the business owner. current studies show that only about one-third of small businesses will survive ten years in business- and Freedom Debt Relief has found that about half of all small businesses will be out of business within five years from the day they open their doors. Freedom Debt Relief has been supporting small business owners and helping them to work their way out of debt for years- and now we’re bringing you tips online that can help you increase the efficiency of your small business and its finances. Read on to learn the best new tips that business owners can use to increase the chance that they beat the odds and survive in the current market.
Keep your business and personal finances separate. Freedom Debt Relief has found that one thing that tanks the finances of many small businesses is the temptation of the owner to dip into company funds for personal use. This is a huge mistake, but it’s one that even the most honest of employers can commit- after all, when you’re your own boss and no one is going to fire you for using company money, why shouldn’t you splurge on that new car or designer pair of shoes?
Your business is its own entity- it’s not fair to your employees or your family to treat business finances like your own personal piggy bank. A smart business owner pays himself a salary, and uses business profits to reinvest into the business itself- or keeps it in an emergency fund to stay afloat when business isn’t booming.
Get involved in your finances. Freedom Debt Relief has found that a shocking number of business owners take a “hands-off” approach to their finances, instead relying completely on their accountant or financial department to work out the details. This is a mistake because owner involvement can help solve a large number of potential financial issues, even if you aren’t a math genius. First, you can help to identify areas of waste, or investments that aren’t making enough money to justify, and you can direct your financial team to redirect resources into new or better areas of research or investment. Secondly, you can detect the early signs of fraud or financial malfeasance should it arise- and put an end to it before it becomes a larger problem.
Learn to reduce and compensate for waste. Whether intentional or unintentional, most businesses suffer from some form of waste. Whether it’s excessively long paid lunches, paying for equipment replacements before they go out of date, or wasted time thanks to social media sites, it’s your responsibility as an owner to identify areas of waste and do what you can to reduce them. Take the time to explain to your employees how to best handle their equipment- this can reduce the possibility of breakage and will save you the funds needed to replace anything that is damaged. Just like you expect your employees to be on-task during the work day, hold yourself to the same standards. For example, are you wasting hours of daylight on social media sites like Facebook? Installing a temporary site-blocking extension that’s active during your work day can do wonders for productivity.
Freedom Debt Relief has found that the most successful business owners are the ones who take an active role in the everyday, seemingly menial tasks that keep their customers happy and their finances healthy. By engaging yourself in your finances and holding yourself to a high ethical standard, you can beat the odds and ensure a long and healthy business life.