6 Smart Investment Decisions To Make As An Entrepreneur

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StrategyDriven Managing Your Finances Article |Investment Decisions|6 Smart Investment Decisions To Make As An EntrepreneurSmart entrepreneurs invest business profits wisely to minimize loss. This ensures that even though the money is being spent, it is spent in ways that enable business growth, which, therefore, allows the value of the business to appreciate. Minimizing losses increases profit-making potential as scarce resources are being put to good use. A vast majority of entrepreneurs, 80% to be precise, fund their enterprises out of pocket, and managing cash flow is a major challenge as most have no prior business cash flow education. But you don’t have to be a part of this statistic. After you make your first turnover, making these smart financial decisions will help you make the most of your hard-earned money.

1.Investing in fixed assets

Investopedia defines an asset as an economically valuable resource owned, controlled, or acquired with the expectation that it will appreciate later. A fixed asset is an asset acquired to liquidate at a later period. It is expected to appreciate so that you can cash in on the benefits. A simpler explanation will be to save up money but not in cash, which can be affected by inflation. Important fixed assets an entrepreneur should invest in as a business, include furniture, and land. These assets appreciate over time, and when managed properly, can make you some great benefits. It will be much more beneficial to your business to own property that would be making you money in the long run and aiding business operations simultaneously.

Fixed assets require efficient maintenance to ensure that your investment is protected. In the case of concrete structures, you could have a periodic assessment done on your building by experts like K&E Flatwork so that any damage beyond normal wear and tear is remedied as soon as possible to prevent asset value from depreciating. Keep your sidewalks and parking lot in mint condition as well. A well-maintained building and environment is easier on the eyes and markets your business better to a potential customer.

2. Buying the right insurance

Insurance on your property, car, and health is an added layer of protection to your assets. Many state laws require all property owners to take out adequate insurance in the event of an unfortunate occurrence. Fire, earthquakes, or even accidents could cost property owners a lot of money in uninsured. Your business could take a hit as a result, and this would be a waste of money as well as an unnecessary business opportunity cost. Take time to research property insurance to understand how taking out one could work to protect property owners.

StrategyDriven Managing Your Finances Article |Investment Decisions|6 Smart Investment Decisions To Make As An Entrepreneur3. Investing in yourself

The importance of growing in your craft and building value through education cannot be over-emphasized because you are only as good as what you know. The entrepreneur, as the human resource, is the most valuable component in the profit-making process. So invest the money and time in bettering yourself so you can improve at building your business. You can take some courses in business analytics, economics, business communication, or even get an MBA. You can also acquire some marketing skills with a CIM so you can take advantage of the available marketplaces. Also, make it a point to frequently upgrade your qualifications when you get them. This is because there are always new ways of doing things. You’ll be able to keep up with the times, advance yourself and your business as well.

4. Investing in marketing

The notion that a good product by itself will drive traffic no longer holds. Many businesses struggle to retain their customers because they fail to invest in proper marketing structures early enough when they had the momentum. Strategically including ad expenditure on your budget saves you from being blindsided when you do need it. Diversify your marketing options by spreading your options so you can target different customer bases. Younger people are more likely to resonate better with social media, and older people are better reached with in-person marketing. Engage some extra help with in-person marketing campaigns so they can be even more productive. The business rewards will be worth the sacrifice.

5. Paying your debts

This may not seem so important on this list, but having debts is counter-productive to success. You cannot truly count your money as profit if you haven’t paid off your debtors. Owing people is also not a good identity to have. It could make it difficult for you to attract value investors as your credibility, which would be needed to build confidence in your enterprise, will be in question. So, come up with a debt repayment plan and pay off your debts at a convenient pace that would not leave you starving or homeless. Most entrepreneurs start up with loans from family and friends. Because of the personal relationship at stake, it is even more beneficial to you to pay your debts, so relations do not get strained. Some relations might even be willing to reduce your interest rate if you express interest in paying off your loan faster. This will imply increased business profits.

6. Getting the right help

Get help with administrative duties and any other roles that are not your strong suit because productivity will suffer in the end if you attempt to do it all. Do not also go overboard with hiring too many people. This will cost you needless expenditure as you’ll be overspending where you could be saving. First, hire an administrator or secretary to help you stay on top of paperwork so you can focus on making business decisions. Also, invest in a trustworthy accountant. An accountant role goes far beyond the boring task of securing the money. They’ll ensure that your taxes are paid on time, so your business is in the clear with the government. They’ll also keep track of cash inflows and outflows so that you know exactly how much profits you are making.

Additionally, outsource work that you do not need to hire full-time staff to do. A typical example is janitorial and maintenance work. Cleaning and maintenance work are duties that can easily be outsourced to an agency if it does not need to get done every day. Observe your workspace and plan on days the cleaning can get done. If it is something you can get done easily without your plate getting too full, then, in this case, it would be better to do it yourself. The result, either way, will be efficient financial management and increased productivity.

As an entrepreneur, you always need to have a plan and a back-up ready to run despite having limited funds at your disposal. Spending your money in ways that benefit your business will help you make the most out of your venture.

Operation Getting More Value In Business

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As a business, providing customers with value for money. However, you mustn’t forget to ensure that your spending generates the best results too. Making your capital work harder will lift a great weight from your shoulders while also enabling you to pass some of the savings onto your clients.

So, how exactly can you ensure that all decisions are made in the best interests of your customers? Here’s all you need to know.

StrategyDriven Managing Your Finances Article | Business Financies

Assemble The Strongest Possible Team

The majority of business matters will be handled by your employees. Therefore, getting the recruitment process under control should be the first item on your agenda. This should be followed by an ongoing investment into their development both individually and as a team. The best ways to achieve this are through training and team building exercises. When they work harder, you’ll get more value for money on a daily basis. There is no stronger foundation for success.

Keep Assets In Good Health

Taking care of your business assets will unlock greater performance levels and prolong the lifespans. Keeping business vehicles in good health with the right gas oil is a significant step in the right direction. Meanwhile, computer system updates should bring telling results too. Even though the daily maintenance can have a very significant impact, you must learn to spot signs of faults. The sooner you act, the sooner you’ll restore their health. This should save a lot of money in the long run.

Research Your Purchases

You already know that customers want to get the best value for money when buying products or services. You should take a similar approach before completing your transactions. Simple ideas like using price comparison sites can work wonders. Likewise, you’ll want to check that any company you plan to do with business can be trusted. Falling victim of fraudulent activity or inadequate supplies will harm the venture and could be very hard to recover from. It’s best to be safe rather than sorry.

Know Your Demographic

Marketing is an area where only the best will do. Efficient marketing should be built around targeting a key audience. It’s impossible to impress everyone, but smarter research and insights will allow you to focus on the people that are likely to purchase. SEO, PPC, trade show stools, printed materials, and social media marketing can all be used to great effect. Remember to analyse the success of every campaign and make the necessary adjustments for ongoing success.

Avoid Bad Debts

While you obviously want to get as many sales as possible, you must not force thing when dealing with repayment plans. Good sales figures count for nothing if the money never arrives. Understanding bad debts and how to avoid falling victim to them is vital. While some people will default on payments, but you don’t want to let this become a major problem. Protect yourself in this manner, and your hopes of maintaining a positive cash flow will be greatly increased.

When the financial elements are under control, you can focus on actively driving the venture in the right direction.

Tips to Reduce Insurance Costs for Your Business

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StrategyDriven Managing Your Finances Article | Healthcare | InsuranceAs a business owner, you know that it’s important to protect the business that you have put so much into by having appropriate insurance coverage. However, even though you might appreciate the importance of having various types of insurance to protect your business, you might still be burdened by just how much it costs. Controlling insurance costs is possible in some ways, though, including by following these tips.

Choose the Right Insurance Company

One of the biggest things that will impact the insurance rates at your place of business is the insurance company that you choose. Taking your time to shop around and choose an insurance company that offers the right coverage but that also has affordable rates is very important, so if you haven’t done that lately, you might want to explore different options like Captive Insurance to see if there is a better insurance company out there.

Focus on Health and Wellness

If the health insurance rates that your company is paying are way too high, consider focusing on implementing a health and wellness program for your employees. This can help your employees live healthier and happier lives and may impact insurance costs for your business at the same time.

Focus on Protecting Your Property

You may be counting on your insurance company to protect your building, vehicles and other company property. It’s definitely good to have insurance coverage to protect these things, but taking steps to protect your own property as well can help with preventing theft or other problems and reducing insurance rates. For example, installing GPS systems in company vehicles and installing a security and surveillance system in your commercial building can both help.

Insurance rates can be a big burden for many companies. Don’t get rid of or reduce your insurance coverage because of these costs, though. Instead, look for ways that you can reduce your rates. You can start by trying the tips above, and your insurance agent might even have suggestions that can help, too.

Going Paperless With Your Finances: Why It Makes Sense

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StrategyDriven Managing Your Finances Article |going paperless |Going Paperless With Your Finances: Why It Makes SenseNo matter how complicated your finances are, you need a way to keep track of invoices, payments, tax details, and all other relevant information.

For most people, this means using paper files and dealing with the hassle of storing hundreds of pieces of paper in an overcrowded filing cabinet.

Believe it or not, paper waste is responsible for about 40 percent of the waste that ends up in landfills in the United States. Just think of the number of times you have to take out the trash when you’re cleaning out your filing cabinet! The sooner you can ditch your paper filing system, the better off you’ll be.

Going paperless can feel like a big deal. Here’s why it’s more than worth the effort.

Going Paperless Saves You Time

If you’ve ever relied on paper files for your business finances, you know that searching for a single page out of hundreds can take time. That’s time you could better put to use running your company and making sure your clients and customers are happy.
Things get misplaced and tracking them down when the files are out of order is time-consuming at best.

When you go paperless, you’ll save yourself time anytime you need to access information. Instead of having to flip through file after file, you’ll be able to search for the exact information you need on your computer. All it takes is a few keystrokes and the information will be at your fingertips in a matter of seconds.

Once you’re done, all you have to do is close the webpage window. You won’t have to make sure the paper gets filed in the proper folder in the right order!

You’ll Stay More Organized

It’s rare for a filing cabinet to stay organized all the time. When you add new documents, the system gets crowded and when you pull out a file, things often get misplaced.

This makes it hard for you to keep things organized so all information is available when you need it.

When you take your finances into the digital space, you’ll be able to improve your organization methods immediately. The physical filing cabinet will get replaced with digital files that never get shuffled around.

The more organized you can keep your finances, the easier it will be to stay on top of things.

Just make sure to invest in the right equipment to make going digital easy. Start researching your options and look for ways to save a PDF as a JPEG to further improve your organization methods.

It’s Eco-Friendly

Paper doesn’t just clutter up landfills. It also uses up tons of water. In fact, it takes over 3 gallons of water to produce a single sheet of paper.

By cutting out paper files and documents from your life, you’ll dramatically decrease your carbon footprint each day.

You can even advertise your business as an eco-conscious company. If you combine your paperless initiative with other environmentally friendly improvements, you may be able to attract new customers that otherwise wouldn’t have approached your business.

Paperless Files Save You Money

Believe it or not, ditching your paper filing system in favor of a digital system can save you serious money each month. Anytime you print a document, you’re using up paper, electricity, and toner. Over the course of the month, the amount you spend on those items can really add up.

By ditching paper, you’ll decrease the amount of money you have to spend on those costly office supplies. Your electricity bill may even go down slightly since you won’t have to send power to the printer often.

Remember, you’re already relying on your computers each day. Using them to manage digital files won’t add to your expenses.

It Improves Information Security

Paper files go missing all the time even when you and your team are incredibly careful. Unfortunately, even a single missing file can be a huge security risk for both business owners and individuals.

Clients and customers expect business owners to keep their information safe at all times. Misplacing files means their sensitive information is at risk and could get intercepted by identity thieves.

Going digital actually improves security for you whether you’re a business owner or taking control of your personal finances. You can add password protection to the files and control who has access to the information at all times.

You don’t even have to store the information on-site. Instead, you can use cloud-based data hosting services to keep your sensitive files safe at all times. These companies have the right protocols in place to keep your files secure against the most common cyber threats.

You’ll Be Less Stressed During Tax Season

Businesses and individuals alike have to deal with the uncomfortable task of filing taxes each year. To get the most out of your tax return, you need access to your financial documents, accounting records, and receipts to claim the largest deductions possible.

If you lose track of those files and records, it will only delay your tax return and increase the stress you feel when you’re trying to file by the deadline.

By scanning your documents onto your computer or storing them in the cloud, you’ll never have to worry about misplacing critical information. If you can’t find the document you’re looking for, all you have to do is search for it.

This can dramatically reduce the amount of stress you feel during tax season.

See the Benefits of Going Paperless for Yourself

If you’re considering going paperless, don’t wait. The sooner you do, the sooner you’ll be able to experience these benefits for yourself.

Don’t worry about rushing the process, though. Take your time, go through your existing files, and get rid of ones that you no longer need. This way, you won’t have to deal with an overcrowded hard drive.

Going paperless isn’t the only way to improve your business or personal finances. You just need to know where to start. Check out our latest posts for more tips and tricks to help you take control of your finances once and for all.

How to Accept Credit Cards at Your Small Business

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StrategyDriven Managing Your Finances Article | How to Accept Credit Cards at Your Small BusinessIn 2017, credit cards were used more than 40 billion times in the US alone.

If you’re a business that doesn’t accept credit cards you’re missing out. There are plenty of benefits for both you and your customers.

If you want to know how to accept credit cards at your business, then we’ve got you covered.

Read on to learn more.

Why Should You Accept Credit Cards?

Before we get into the detail of how you can accept credit cards, it’s worth understanding the reasons why. Here are some of the benefits.

More Sales

The more different types of payments you accept, the more sales you can make. If someone wants to pay by credit card, and you don’t offer that option, then you’ll miss out on a sale.

Many customers will prefer to pay by credit card for different reasons. It may be that they can earn rewards or cash back if they use their credit card, or they may just need to kick the payment further down the line.

More Choice for Customers

The more options you give customers, the better. If a site or store only offers limited payment options, and their competitor offers more choice, then the competitor is likely to get more business.

You should give customers as much choice as possible if you want to maximize the potential of your business.

More Secure

If you only accept cash payments, you’ve got to get that cash to the bank somehow and keep it in your store throughout the day.

That means you’re opening yourself up to a lot more risk. If someone breaks in or tries to take your cash when you’re on your way to the bank, you could end up losing a small fortune. With credit card payments, there’s nothing for anyone to steal.

You also don’t have to worry about any of your staff lifting money from the cash register, either.

Time-Saving

Taking money to the bank, paying it in, filling out your receipts, and recording your cash sales are all time-consuming processes.

With credit card payments, the whole transaction is done in seconds. The payment will end up in your account, a receipt will be generated, and some systems can even upload the transactions to your accounting software of choice. All of this will save you a lot of time in the long run, and as we know: time is money.

Online Credit Card Payments

If your business is online-only, then accepting credit card payments is fairly simple.

You’ll need a few things set up on your website. You’ll need a shopping cart first of all so that users can make multiple purchases. You’ll then need a payment gateway, which is the service through which your customers will make their credit card payment.

There are plenty of payment gateways to choose from. Popular choices include Paypal, Square, Venmo, Shopify, and more. Each of these gateways come with their own specific fees. Most of these are in the range of 2.7 to 2.9 percent of the transaction, plus a fixed fee of anything up to about $0.30.

Integrating these payment gateways into your website is simple to do, and if you choose one of the big names you know that your customers will trust the gateway for making a purchase.

One issue with online payments is that you may have issues with cards that are declined. This a particular issue if you offer a subscription service. In this case, you’ll need good dunning management in order to chase up any failed payments.

In-Person Credit Card Payments

If you’re going to accept payments in-person, things are a little more complicated as you’re going to need some additional hardware.

You’ll need a point-of-sale (POS) system in order to process credit card transactions. This will include a card reader that the customer will use to make their payment, as well as the software to process the transaction.

Alternatively, you can use a mobile phone combined with a card reader to replace the traditional POS system. This is particularly useful if your business doesn’t use a permanent location; if you sell from market stalls or a food truck, for example. Since the system only requires a phone signal, you can use it almost anywhere.

With this equipment in place, you have all the physical hardware that you need to accept credit card payments, but you’ll still need someone to process the payment.

Merchant Accounts vs. PSPs

The traditional way of accepting credit cards is to set up a merchant account.

This is basically a business bank account that is set up to handle your credit card payments. The money goes into the merchant account and then is transferred to your account, minus any fees. You can find merchant accounts with banks, payment providers, and independent businesses.

There will usually be significant set-up and equipment fees, and you’ll almost certainly pay monthly fees too.

Payment service providers are all-in-one businesses that handle all of the payment processes. Paypal and Square are examples of PSPs; these companies don’t require you to set up a separate merchant account to handle your payments. The payment structure is usually simpler to understand too.

Which you choose is really personal preference; for small businesses, the lower set-up costs of PSPs could make them a better choice.

Are You Ready to Accept Credit Cards?

We hope that this article has given you some insight into why you should accept credit cards and how to go about it. Credit card payments offer a range of benefits for both your business and your customers, so if you don’t accept them, it’s definitely something to consider.

If you’re looking for more great content, please be sure to check out the rest of the site.