Building your brand is very crucial to have a strong presence in the market and stay ahead of competition. With 2020 almost over, it is perfect time for brands to evaluate their financial condition, discover new market opportunities and set financial goals accordingly. Here are five money tactics which can be used by any brand to make or save more money.
SMART INVESTMENT
Investment is a very simple concept yet most people overcomplicate it which does more harm to them than good. As a brand, selling your products and earning is the basic way but invest in companies, in other industries, with worthy track record and good background. This can be an extra income for your business which will be beneficial in times of crisis. Before investing, make sure to be patient, focused and research thoroughly and carefully about your investment.
BUDGET PLAN
To creating and follow a budget plan is the most simple and effective method to run and grow your brand. A basic yet effective budget plan which has helped all brands is the 50/30/20 financial budget. According to this plan, 50% of your monthly income has to be used on ‘needs’ like food, rent and utilities, the next 30% on ‘wants’ which includes travel or entertainment, things which are not needed but would like to be done. The remaining 20% needs to be stored away in your savings account. Thus, helping you to monitor your spending habits and save money.
CREDIT SCORE
Most businesses require money which they don’t have and have to take a business loan. Your credit score is used by business lenders to determine whether you are credit worthy or not. When a business becomes a defaulter or misses payment on a loan, their credit score decreases. This marks you as non-trustable for lenders so they provide loan on higher interest rates. Since every interest percent is important, it will be beneficial for you to keep your business credit score in line.
SEPARATE FINANCES
Simple concept yet it has resulted in failure of many small businesses. Keep your business and personal loan separate. Not doing so can lead to your retirement savings being used to fund your business, leaving you with no savings. To manage your finances, make a business bank account, file for an Inc or LLC, and use company name to setup utilities. This will help you to keep your personal and business finances separated.
INSURE YOURSELF
We never know what will happen tomorrow, having insurance protects you from any unforeseen event. An accident can result in a major surgery; this can lead to huge amounts being extracted from your brand to pay your medical bills. Here a medical or life insurance plan will be a life saver not only for you but also for your business. It is advised to buy these plans as early as possible so that you can enjoy high insurance cover with minimum annual premium.
These were some simple and easy money moves which can be implemented overnight and will help you preserve your wealth; protect your business and family.
