4 Ways to Avoid Business Money Worries
Running a business can be stressful, and one area that often causes us anxiety and sleepless nights is the financial side. Entrepreneurs have the freedom that comes with not being employed, but there is no financial security of a payslip each month, paid holiday and time off when sick. Here are four ways to put that stress monster to sleep and avoid business money worries.
This is the basic one; most people have some form of indemnity insurance in case a customer raises a serious complaint, but what about you? Loss of earnings from sickness can be really unbalanced, and you need to be mitigated against this happening. Life insurance and critical illness is one thing, but what if you have a smaller medical issue that stops you working? Look into the different policies and if needs be seek advice from a financial advisor. There are ways to replace monthly income if the worst happens and you need to stop working for a while.
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Know Your Books
An accountant is great and worth their weight in gold, but you need to understand what is going on. Knowing your cash flow as it comes and goes will help you feel more in control of your financial status. So, don’t just blindly hand things over, ask for monthly reports, understand when money arrives and what invoices you have to pay. This gives you the opportunity to plan for drier spells and make arrangements with creditors if needed, which in turn can help you save penalties if you need to make a payment late occasionally. People prefer and open dialogue to staunch silence and no money coming in, so make sure you act as you would wish to be treated.
Book recommendation Profit First Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
Does your business really need an external premise? Many people save thousands by working from home. If you have a virtual presence and rarely meet your clients in person having an office space could well be a waste. Coffee shop meetings are perfectly normal, and no one will question your reasons. Working from home also saves on the temptation to go and buy lunch or expensive takeaway coffees which can soon rack up the spend. It may only be little, but everything you can save will help. Consider making your own website or trading services with a web designer to get a better deal. The only limit to saving money is your imagination and creativity.
Consider a Side Gig
There are lots of ways to bring in a little more cash in a passive way, or even in an active way, and we call these side gigs. With an entrepreneurial brain, you are likely to be able to turn your hand to more than one thing. Passive solutions include renting your driveway as parking, pet sitting or selling on eBay. There are plenty of others, so you are bound to be able to find something that appeals, and it can be useful to have a change and focus on something different for a while.