Business owners have to keep the money wheels spinning. Otherwise, the budget will dry up and the company will close its doors, digital or physical. Protection is the key because it means your monthly incomings won’t disappear into thin air. And, believe me, it happens more than entrepreneurs would like to imagine.
Still, it’s not as if you can strong-arm people into giving you money. It’s called racketeering and it’s illegal. So, finding ways to protect your boss is a tough process. Where do you start? What do you do?
Well, there is a simple answer to the questions above: continue reading.
Think About Your Health
As the leader, there aren’t many people who can take your place. You may be the only person in the whole company given most startups are one-man-bands. If you can’t step up and lead, then the entire business will crumble. Sure, you can take on a partner just in case, and that’s a wise contingency plan. However, checking out longtermdisabilitylawyer.com/news/protect-income-insurance/ works too. Should your health become an issue, then the insurer will pick up the tab. If they don’t, the lawyer will hold them to account. The company may stagnate until you’ve recovered but at least it won’t fail.
Get It In Writing
Traditional businesses follow the rulebook to the letter. So, it’s unthinkable to imagine that they would negotiate a deal without getting it in writing. A contract holds both parties accountable should either not do their job. SMEs are different because a contract is a legally binding piece of paper and bosses don’t like the rigidity. Plus, it adds an extra layer of responsibility. Although both of those things are true, a signature means a client can’t pull their investment on a whim. Therefore, the money should be protected for as long as the length of the deal.
As a rule, an investment seems like a risky venture. The project could tank and your cash would no longer exist. Ouch! Surely a savings account is a safer, wiser option? Well, not necessarily because the rate of interest is very low at the moment. The odds of seeing a high ROI are minimal. Stocks and shares on the other hand pay out quite a considerable sum. And, there’s no need to worry if you’re an amateur. Investopedia.com/university/beginner/ has plenty of excellent tips. If in doubt, you can Google the words of wisdom of the greatest investor ever, Warren Buffett
People will tell you that securing money is about being likable. Sure, it plays a part but the trick is to be reliable. No client will continue to pay for a service which is late and low in quality. It doesn’t matter how charming or nice you are because they can’t take the risk. So, the key is to perform to a high standard and to show your existing clients they have chosen correctly. That way, they’ll continue to use the business and spread the word to their peers.
What steps have you taken to protect your business’ finances?