One of the worst things you can do as a
business owner is to make one or more major financial gaffes.
Yes, money mistakes can come back to haunt you
if you are not careful.
That said are you doing all you can to
properly handle money as you run your business?
Protecting Your Biggest Investment
In doing all you can to avoid financial
miscues, here are a few pointers to keep in mind:
1. Be smart to protect your investment – The
biggest investment you have is your business. For example, if you are a
physician and have your own medical practice, did you invest a lot of time and
money into it? It is important to remember that something like a major illness
or injury could sideline you. When that occurs, you could then left be
wondering how you will pay the bills that do not stop coming in. This is why it
is a good move to have a business overhead expense policy. That policy will take care of the expenses
that do not stop because you are unable to work for a period of time. With the
policy in place, you can have more peace of mind. The hope is then that you are
able to get back to work sooner than later.
2. Get the best deals for your business – Are
you doing a good job when it comes to getting deals for your business? From
standard supplies to office equipment, be sure you are not being charged too
much. If you are spending too much on such needs, it can eat into your profits
before you know it. Even if you have been with specific vendors for a while
now, you still want to shop around. As long as you do not lose quality, going
with other vendors for better prices is fine.
3. Watch out for credit card debt – Some
business owners’ end up putting a variety of things they buy on credit cards.
While paying the card off each month is ideal, not all business owners do this.
Before they know it, they have a sizable amount of debt on their hands. The
interest fees alone can add up rather fast. Do your best to pay the monthly
balance off so you do not run into such a dilemma. If needed, shop around to
see if you can get a better credit card deal from a specific bank or financial
4. Paying for office space – Unless you own
the property where you operate out of, you are paying rent. As a result, you
want to be sure you are getting a good price to rent out space. If paying way
above market value, this cuts into your profits. It may come down to relocating
your business to a more affordable area of town. If you consider doing this, be
sure to do your research. You want a business that is in a good location for
foot traffic, low crime and more.
In avoiding financial miscues, you do one of
the most important things you can do in running a business.