Tech mistake |What is important to your business? What do you pride yourself on? What is the foundation of your company policies? For each and every single business world wide – this could be different. Every single business will have different motivations and differing factors that keep them moving forward and that dictate their aims and goals in business. Some businesses will look to be ‘non-profit’ and aim to reinvest any profit made back into the company or even donated to a good cause. Some businesses will have a huge focus on customer services and make the customer the center of everything they do. There are a lot of things that can become the foundation of a business, and all are valid.
However, we mustn’t fool ourselves. There is one thing above all that is the most important factor to a business: money. Without money, a business hasn’t got much at all. Money may not be the motivating factor behind every single decision that a business makes, but it certainly has a huge place of importance in business. Simply put, a business can’t do anything and won’t amount to much at all without money. That’s the bottom line – and that is why money is almost always going to be the be all and end all of business. It’s like your own finances, if you’ve no money, you can borrow some, take out a loan or use a credit card – but if you continue to build up debt in this form, it will become overwhelming, and creditors will chase you. If you can’t pay your debts, you will have to dissolve your accounts and declare bankruptcy. The same goes for business – there is not a limitless pool of funds that you can draw from, but if you’ve got a lot of cash, you can certainly move assets around to squeeze cash from your business. As for normal business? A lack of money forecasts the end times.
In business, a lack of finance is a huge issue. A business has a lot of costs – you need to pay wages, you need to pay your energy and facility bills, you must pay for the rent of your business premises if you are renting, or the mortgage of the place. A lot of costs are wrapped up in owning and running a business, and if the cash runs dry, these ends can’t be met – not with your money at least. This puts a huge focus on money for a business – you will always want value, and you will want your business to earn money that is worth your time so you can keep it running, and ideally grow it. Without finances, you don’t have much options at all and this can be a major worry for any business out there.
What do you if your business has no cash? Well – in the first instance you need to cut down on what you are spending. Take a good look at your yearly budget and try to identify areas of big expenditure – this should come easily as areas with big expenditure are clear. Then, find ways to cut down on your spending. If you’re buying supplies at high cost, see if you could save cash with DontPayFull.com. If your rent is too high, consider moving to a new premises. There should always be something to do to ensure your business can cut losses – if not the short term, then definitely in the long term.
While money is hugely important to a business, a business and owner will always have different motivations, and money won’t always be the major one, despite its clear importance to the world of business. That’s a good way of thinking – businesses are better off ethically if they don’t treat money as the be all and end all as money can lead a business owner towards some drastic, but sometimes necessary decisions that aren’t always right. The best way of looking at it? Do your best to avoid a situation where money isn’t a problem. This might be a bit of a ‘pie in the sky’ situation as businesses will rarely avoid money issues – even the biggest corporations cut costs now and again. However, if you can do your best to ensure that you don’t run into money troubles, or take steps to prepare for times of business austerity, you’ll put yourself and your business at an advantage and give your business a huge chance of surviving. You might not be able to buy that type of insight!
The article was originally published here.