Saving and Investing as a Business Owner
If your small business is doing well you may have spares funds that you are unsure what to do with it might be time to invest in your business. It seems the best option is a mixture of savings and investments. That way your business is covered if there is a downturn in trade, but you can also be making more money from investments.
Look At The Reserves Your Business Needs
The first thing you should do is look at what reserves your business has and calculate how much you would need to cover you for six months.
Consider the scenarios of your sales dropping by 25% and your overheads increasing by 50%. If that happened, how much money would you need to ride the storm to give your business the chance to get back on its feet?
Whatever the calculation works out to is the amount you should have sitting in a high-interest bank account with instant access.
Hopefully, if things had started to go that wrong you would have realized and already put measures in place to correct it. Having enough money to cover you for 6 months will ensure that you have the time to do that.
Turn Spending Into Savings
Another option you may want to consider to increase your savings is with a cash back credit card. You’re going to have common expenses and overheads for your business every month anyway.
Certainly some major expenses will take several months or years to pay off. However, you probably have smaller expenses you pay for each month that are easily covered. These could be a great choice to put on a cash back credit card.
By paying off your balance in full each month you aren’t going to be charged any interest. At the same time you’ll be earning cash back. The larger the expenses are that you can pay for fully each month, the more cash you can be earning back.
This is a simple strategy that won’t cost you any money. It can also help you bring in additional savings and funds to invest back into your business.
One credit card I found to have a very high cash back rate and that applies to any purchase it’s the Chase Freedom Unlimited Card. If you would like to learn more about getting a card like this for your business click here.
Additional Savings From Proper Tax Deductions
As a business owner you will also have additional tax savings that the average employee won’t have. Even if you have a small business or home business, a lot of these tax savings will still apply.
As I am not a tax accountant, or certified tax professional, I cannot give you specific advice for your business. However, it’s important to understand the concept of tax savings for a business owner.
It gives you the ability to write off things such as office space, advertising costs, or investments in training courses among other things. Seek out a tax professional that is familiar with small business, and home business, to find out all the possible deductions available to you.
You might also want to check out this book called Lower Your Taxes Big Time. The book is written towards small business owners as well as home business owners teaching them what kind of possibilities there are for tax-saving in your business. Check out the current price on Amazon HERE.
The more you can save on things like taxes the more you’ll have available to invest back into your business what other Investments.
Invest In Your Business
Technology and new innovations can make your life much easier and it is well worth investing in some of these to improve your business. This can ensure that your customers get the best buying experience as well. That way both you and they could benefit from investing in your business.
There are several ways to invest back in your business, both in the business itself, as well as you as the business owner. One key foundation is to invest in your own training and in personal development.
Your business will only grow to the point that you do, so you should be focused on continual Improvement. The better you become so will your business. If you’d like to check out some of the top personal development books I recommend check out my post here.
Also, you’ll most likely want to invest back into tools and systems to scale and grow your business. There are several that I would recommend as a foundation. You’re going to want an email autoresponder, sales funnel system, and CRM to start scaling your business.
These options are often very low cost, and can create massive returns in the long run. That being said, I suggest you get started with those as a foundation. If you’d like some addition training on how to set all of those things up for your business, check out my free lead generation boot camp here.
Think Of A Diversified Portfolio
If you are considering investing in stocks and shares you should be thinking of a diversified portfolio to spread the risks. Investing in just one business is the riskiest thing of all because if they go bad so does your investment. Spreading the risk will not stop all the losses, but it should mean they will be less likely to happen.
Take the advice of experts in these matters and make use of the best MACD settings to give your investment the best chance of success. Your business may rely on you doing so.
Some other possibilities to consider are things like index funds as they have management costs and are diversified among many companies. Obviously reach out to an investment professional for more specific options.
Think Of Your Retirement
It may seem a long way off but you should start investing in your retirement now. The sooner you start the lower monthly payment you can invest, and the more years you are saving for, the greater your retirement pot will be.
If you want to be able to live the lifestyle you want when you finish working, start investing in your retirement plan now.
While you are talking with a financial adviser about this, you should also be looking into life insurance and making a will. These would both be really important for your family if anything were to happen to you.
There are even life insurance programs that can be used in a way to create a future financing option for yourself. Allowing you potential tax savings and investment opportunities in retirement.
If you’d like to learn more about that, I’d suggest checking out this book Becoming Your Own Banker: Unlock the Infinite Banking Concept
Invest In Your Workers
The workers can be the most valuable asset of any company and you should invest in them by giving them a bonus perhaps, or taking them all to a special event or out for a meal.
A thank you of some sort goes a long way with employees, and they will work even harder when they realize they are appreciated.
You can invest back into your employees and team through further training, or also through incentive programs.
Incentive programs can be a great way to increase productivity within your organization. One main concepts as a foundation for this, is to celebrate what you want to duplicate.
A lot of business owners and managers lead only with negative reinforcement. It can work to some extent, but it doesn’t create the best working environment for your team.
Typically leading with positive reinforcement and incentives that reward productive behavior, ends up being a win-win for everyone. Consider implementing these kinds of programs as a form of investment in your business.
Invest in the right things and your business will grow even stronger and even faster.
Did This Blog Help You? If so, I would greatly appreciate if you could comment below and share on Facebook
Facebook: facebook.com/coachmikemacdonald
Email: [email protected]
Considering Starting a Home Business?
Check out my Work With Mike Section
“I help coachable and teachable professionals become Financially Free and Live Full Time! Helping you create a better tomorrow through a better you!”
P.S. If you aren’t generating leads for your business it’s because you don’t have a system in place to do it. CLICK HERE to set up the exact system I use to Rake In Quality Targeted Leads Daily
If you enjoyed this post on how to invest in your business as business owner, please retweet and comment below
