Although there’s an element of truth to this, the situation changes rapidly as soon as your business begins to grow. Once you begin employing others and your business increases in size, you have to start increasing your overheads to meet demand. So, if you’re increasing your overheads, how do you ensure financial stability in a growing business? In this post, we take a look.
Eliminate your Debts
If you have either personal or professional debt, it’s vital that you clear it as soon as possible, This may seem a little simple, but you’d be surprised to hear that many people do not place it highly on their list of priorities.
As a business owner, you certainly can’t afford to have credit for consumption. It may not seem particularly problematic while your business is growing organically, but if you hit troubled times (as most businesses often do), then you need to ensure that you’re no worried about paying off debts- eliminate them ASAP.
Stocks and Shares ISA
Aside from clearing physical debts, you can also protect your business by diversifying your portfolio. One way that you can do this is by investing your company’s savings and profits into a stocks and shares ISA.
A stocks and shares ISA is a type of ISA where your money is invested in ‘qualifying investments’, these vary in type and scale. There are a number of different investment types that this covers, but broadly speaking it includes: cash, unit trusts, stock market shares, government bonds. You can invest your full ISA limit in a stocks and shares ISA and allow your money to work for you. Although there’s a level of risk involved, you could potentially earn far more than through a current account or standard ISA.
Buy into Gold
Gold is what’s known as a ‘safe haven’ asset. This is because, whenever the world has been through a crisis, gold has held its value. This means that it’s a great idea to invest in gold if you’ve also invested in other more risky adventures, such as a stocks and shares ISA. This way, no matter what the physical value of your company and your assets, you’ll know you’ll have safe money invested in a case the worst should happen.
There are hundreds of ways to ensure your company stays economically stable. Make sure you research all of your options and find the best for you.