5 Tips To Help Your Business Survive Financially

Congratulations on being your own boss! Now embrace the reality and follow the five tips below if you want your business to survive financially beyond 2017:

1. CUT THE COSTS

There is a thin line between being professionally thrifty and a total miser whose penny-pinching is gaining more reputation than his or her products or services.

If you’re splashing the cash on fancy décor for the office and are buying lots of premium software, consider alternative options. You should only be spending money on essentials and things that are going to help you grow as a business (and in turn, earn more cash).

So, cut down on the luxuries and focus on the necessities.

2. KEEP PERSONAL AND COMPANY FUNDS SEPARATE

There should be a wall of proverbial steel between your personal finances and the corporate bank account. This will systematically ensure that you have sufficient money for your life’s necessities and that not all of it is a business investment.  More significantly, such funds protect you from liability in the case of corporate debt or legal trouble.

It is critical to ensure that your business is incorporated as a distinctive legal entity with its own financial structure. Otherwise, you would be at a high risk of paying any and every debt the company incurs from your personal account.

3. PAY YOURSELF WHAT YOU’RE WORTH

Establish your position in the business and pay yourself a proper salary. The majority of entrepreneurs only pay themselves a pittance for their business to survive first up. However, this can be a dicey practice as it creates a misleading picture of your company’s cash flows, and also puts your personal finances at risk.

Remember that gving yourself a market-competitive salary gives you the fundamental resources to cover everyday expenses, and will also help you to save up money. You won’t need to mix up your personal and business finances if you’re earning enough to get you by.

4. ACQUIRE A BUSINESS LOAN

Yes, you need more credit to build your credibility.

It is true that not all rationale for getting a business loan is a sound one, but if utilised pragmatically a loan can be the stepping stone of your growth. As already discussed, business is all about deploying the best management and financial practices you can. If you want consistent growth and to expand, you need large-scale financing which may only be possible through business loans.

Notwithstanding the above, young entrepreneurs often struggle to get hold of a sufficient sum of funds either due to a modest credit history, or a non-existent one.

Therefore, it is admissible to start off with a short loan, build credibility with the lending institution through timely repayments and eventually qualify yourself for a sizable business loan in future. If you’re interested in taking up a business loan, one company worth contacting is Aspire Business Loans. They are the UK’s leading broker of unsecured business loans, having processed more than 4.5K enquiries in 2016. You can contact them via their website https://www.aspirebusinessloans.co.uk/ if you want to know what kind of business loan they can secure for you.

5. TALK TO PROFESSIONALS

Do you remember the time when you were slugging to complete your school project and had it not been for the internet, you would have never completed it? What did the internet offer you -concepts, advice and strategies and a whole world of related information by professionals who know and have experienced more than you can imagine. Therefore, use the internet and get some financial guidance.

You should also give your ego a reality check and talk to a relevant financial professional, as you can’t always rely on what you read!

A financial planner can offer advice on investing saved funds and help you to budget and manage your expenditures. Moreover, he or she can structure your finances to lessen your tax burden and thereby protect you from unnecessary liability.