Last Updated on Mar 26, 2020 by James W
You’ve started a new business, and it’s gaining some ground in the marketplace. But, you’re still only at the beginning of profitability, and a lot can go wrong at this stage in the game. You must ensure that you are cutting costs where you can so that there is never any weight of debt pushing down on your company. To make sure this never happens, we advise that as the owner of the business you take several key steps of action.
Step 1: Hire An Accountant
How much money does your business have in funds right now? If the answer is that you don’t know or that you have to check, that’s a problem. You should always know how much you have in savings and funding in your business accounts. But, the fact is a business owner does not usually have time to check this. That’s how business spending grows out of control, and an owner suddenly finds they are paying employee wages out of their own pocket. This is an extreme example but make no mistake, it could quite easily happen.
But, if you hire an accountant you can guarantee your business accounts are being managed effectively. You will even have the possibility to find some funds that you never knew existed. An accountant can help you deal with taxation and other binds on your accounts, so you have more to spend at the end of the year.
Step 2: Get Insurance
It’s important that your company has insurance. In some cases it’s against the law for your business not to be insured. One of the key kinds you need is liability insurance. This will protect your business if anyone is injured on your business premises or if an employee injures someone else. It will also protect your company against the cost of property damage. Typically, these matters will be dealt with outside of court. But, if a claimant does successfully sue your business if you have insurance, that court case will be paid for by your insurance company. You won’t have to worry about the cost taking its toll on your company.
The question you are now asking is, do I need liability insurance for my business? Well, if you ever make a contract with your client or customer, you almost certainly will. The fact is that every business deal usually includes a contract. In the simplest example, if you buy any electronical product, you often agree to a contract with the provider. Your business does need this form of protection.
Step 3: Where Possible, Cut Costs
Our final piece of advice is that you cut costs in your business where you can. An example would be to ensure you are not wasting money on unnecessary technology. For instance, you may have bought a fax machine for your business so that you can transfer important files. But, if you use a cloud server your files can be accessed from anywhere in the world. You don’t need this outdated, expensive piece of hardware. Sell it and put the money into a vital part of your business, such as marketing your company.