The Money Saving Hack That Can Save Your Business
According to the very latest statistics, almost one-in-five new businesses fail in the UK each and every year.
This shouldn’t deter you from launching your own venture, however, not least because around 80% of businesses survive beyond the first year and lay the foundations for more sustained success.
In this post, we’ll explore this concept in a little more detail, while asking how firms can utilise prepaid credit cards to survive during their first years of operation.
The Seven Ps of Marketing and Your Business Foundation
Let’s start with the basics; as the most successful major corporations are founded on clearly-defined business and marketing models.
The most popular marketing method includes the so-called “seven ps”, which in turn refers to product, promotion, price, place, people, process and physical evidence.
These all represent core strategic elements of any business plan, with price particularly insightful and covering everything from what you charge customers to available payment methods and the valued-added discounts used to incentivise customers.
Arguably, price and its various elements is the single most important aspect of the seven ps, and one that can impact on the business’s turnover, its ability to build a loyal customer base and its bottom-line profitability over time.
OK, So How Can You Manage Your Company Finances?
This leads us onto the importance of money management, with most businesses failing due to a failure to understand price components, make the most of capital or optimise cash flow while the venture is in its infancy.
But what steps can you take to manage your company finances more effectively? Here are some ideas to keep in mind:
- #1. Create a Separate Business Account: Ultimately, it’s important to run your business venture as a viable and standalone entity, and one that’s completely separate to your own personal wealth. To this end, you’ll need distinct business and personal bank accounts, while you should never utilise company funds to fund non-commercial purchases. This also makes the process of money management far easier, as you can review your company’s cash holdings quickly in real-time.
- #2. Utilise a Prepaid Debit Card: On a similar note, you may also want to take out a prepaid debit card in the name of your business. This is ideal when funding commercial purchases, as it requires you to budget accurately for materials and outgoings while making it easier to minimise spending and optimise profitability over time. This type of card is easy to use and top-up, while it creates responsible and accessible funding that’s ideal for novice entrepreneurs who are finding their way as business leaders.
- #3. Have Clear Spending Priorities: On a final note, it’s also important to develop clear and concise spending properties as a business owner. This allows your budget to be split between strategic and non-strategic expenses, while enabling you to manage and organise your spending while fulfilling pre-existing growth plans. This can take considerable time and effort, but it will ensure that your business spends responsibly and within its means over an extended period of time.