Investing in Your Business: Money Smarts for Modern Business Owners
Running a successful business is not something that happens by mistake. It takes hard work, determination and the ability to stick with it even when times are tough. If you are starting your own business, here are some sensible tips for how to invest in your business with time and effort as well as money.
Look at Alternative Forms of Investment
Getting hold of the credit you need can be tough as a small business owner. The banks might not be interested, and you may not have enough on your credit card. But these days there are other options to consider.
For example, you might want to look at crowdsourcing on sites like Kickstarter, which has been responsible for some big successes in recent times. Or peer-to-peer lending using websites like Zopa. Always consider all your options carefully before making a decision.
Have Enough Savings
Many new businesses go bust because they run out of money in the first year or two, so don’t let that happen to you. Make sure you have enough to live off until you start to make money. You could have a potentially successful business, but you need to ensure you can get through the difficult times.
Choose Your Premises Carefully
Do you really need a large office? Think carefully about what you really need, especially when you are starting out. These days you might be able to do most of your work from home, and you can always rent a fancy address and secretarial services. Sometimes you will need a large premises, but make sure you consider all your options first.
Go Easy on the Expenses
It can be tempting to spend money on expenses that are tax-deductible, but they can quickly add up. Expenses like travel costs and entertainment are not free money, so don’t get into the habit of spending more than you need to.
One of the biggest investments you can make in your business is to constantly learn new things. Read blogs and articles online, read resources like Forbes and Entrepreneur, go to seminars, attend conferences, read books, speak to other successful business people, take courses and study the competition. There are many ways to keep learning, so just make sure you do so regularly.
Plan for the Unexpected
Have a plan in mind for when things don’t go as expected. This could be business-related issues such as not making as many sales as you predicted, but it could also be personal issues.
For example, you could find yourself suffering an injury and being unable to run your business at the same level as you are used to. In this case, finding a good personal injury in advance can save time claiming compensation and getting on with running your business.
Invest in Your Business and See It Succeed
Running a business is tough, so make it easier by ensuring you do everything you can to invest in its success. By making smarter financial decisions and ensuring you invest your time and effort into constantly learning, you will find that you stand a better chance of running a successful business after those first few difficult years.
Ella Harrison is a business woman who started her own company right out of college, and has never looked back. She enjoys helping others who are just starting out, particularly women and graduates, and takes time each month to write articles for business blogs.