As an entrepreneur, you might personally use a money management app. For your business, you will have different legal requirements for business finance. Here are three money management tips for contemporary business leaders…
Money Management Tips For Business Owners Playing The Long Game
Running a business involves doing many things simultaneously. You also need to know how to invest and manage money. The wise decisions you make with money can positively impact business finances. On the other hand, failure to invest and manage money wisely can result in unnecessary monetary losses.
Statistics indicate that 82% of businesses fail due to poor financial management. So, to avoid that, here are three money management tips for new entrepreneurs and business owners interested in long-term growth.
1. Monetize Your Brand’s Digital Presence
Today, having a digital presence goes beyond having a huge following on social media or owning a professional website. Instead, it means you have an opportunity to generate revenue from your online presence.
For example, if your business website has impressive organic traffic, it would be a lucrative to make bring profit from ads. You can also monetize your website by making it a membership-only platform. Remember that if you have something that interests the public, the market may be willing to pay a nominal fee to access exclusive content.
On social media, your platform can become a draw for business collaborators. In other words, brands may want to advertise their products and services on your active social media channels, as an influencer to their target market.
As an entrepreneur, this is good news because it creates a reliable and steady income from your social media efforts. This type of monetization is possible only when you prioritize maximizing the potential of your social media channels.
2. Contemporary Money Management Tips: Consider Digital Currencies
Cryptocurrency has gained momentum. Especially as more people seek ways to diversify their income and savings.
Typically seen more for personal money management tips. But as an entrepreneur, this is something to consider regarding managing your business finances.
In the traditional banking system, charges are common on every transaction made on your account”
- Overdraft fees
- Maintenance charges
- Insufficient funds penalties
- Early account closing fees
Fortunately, it is not the same with crypto friendly banks. The processes are quite different. Even those financial institutions that charge for transactions do not exceed 1.5% per crypto trade. Comparatively, crypto-friendly banks help you save by avoiding excessive charges.
3. Use You Business Credit Card Wisely
It is tempting to use your business credit card for all purchases. However, this can put you damaging debt.
As an entrepreneur, your first thought must be making judicious use of money. This means controlling how much you spend and reinvesting revenues responsibly. Seeing your credit card as a money management tool would be wise.
Why would an entrepreneur need a credit card for business? The answer is quite simple and logical…
The credit card allows you to pay for short-term expenses without applying for a loan that may delay. In some cases, even backfire. In other words, an entrepreneur may not be approved for a loan. On the other hand, with a credit card, the line of credit can immediately be made available, and you can take quick action to paying it back.
Although this may not be the most optimal, the judicious use of the little plastic card would help you manage your money and leverage your options.