As a small business owner, you already know the value of keeping your assets safe. But you should realize that creating a safety net for your business means more than knowing where your money is coming from. Today’s tips from Financial Advisors can help you lay a more solid foundation so that you can more comfortably manage through downtimes.
Maintain a Legal Business Structure
Sure, anyone can go out and sell products or services, but without a business structure in place, your business and your personal assets may be at risk. Consider launching as an LLC. A limited liability company has many benefits, including ensuring that your business is seen as a separate entity if you get sued. An LLC also has a flexible management structure; you won’t be told with whom and when you can share profits. If you’re in a hurry and crunched for cash, you can form an LLC online if you don’t mind doing some research before you get started since rules differ from one state to the next.
Look into a Home Warranty
Primarily if you work from home, another great way to potentially cut costs is by investing in a home warranty to cover damages that may occur to your home’s major appliances. After all, the average price to fix an air conditioner or repair an HVAC system can be upwards of $5000 or more, so if you’re on the fence about home warranties, AHS can help; take a look to learn more.
Keep Records Organized and Secure
No matter what type of business you run, you likely are required to hold onto at least some records. Southern Connecticut State University explains that this could be anything from financial statements to legal documents. You may also have operational manuals, staff studies, and more, depending on your industry. One quick way to ensure you have access to your files always is to turn them into PDFs with this tool. Utilizing a PDF, you can make changes using a PDF editor without having to swap back and forth between formats. PDFs are also easy to search and share across different operating systems and platforms.
Know Where to Spend and Where to Save
Making money is only one part of your business. Another crucial component to your success and sustained longevity is knowing when to spend and when to close your checkbook. Attorney Bethany K. Laurence tells NOLO that discretionary spending is one place to cut when suffering a cash crunch. However, it would be best to prioritize spending on the things that matter most, including advertising, great employees, and customer service.
Under-Promise but Over-Deliver
Trust is the cornerstone of all professional relationships. Be an expert in your field, but always deliver more than you offer. This is a fairly broad statement that can apply to all industries. For example, if you own a lawn care company, you might take a few moments to discuss the types of grass your customers have and why you’re cutting it to a certain length. This might be common knowledge to you, but the added benefit of access to your knowledge will help instill trust and loyalty and gain customers.
While you must watch where your money comes from and where it goes, there are other ways to reduce risks when running a small business. From prioritizing your customers, filing your official LLC, and even maintaining PDF files of documents for quick access and easy storage, the tips above can help you weather storms that you may not expect.