Businesses often retain loans in order to make ends meet. Usually by five years, a business should be getting beyond initial startup loans—but then, sometimes they don’t. Often, money won’t come in when it should. Many clients will avoid paying an invoice until the last minute.
As an individual, you can learn a lesson here. Many businesses aren’t alone here: most small businesses have difficulty getting the payment they deserve from clients. You’re likely going to experience the same thing in your personal financial affairs. The solution is not to live paycheck to paycheck.
Another solution small businesses use that you can take away from is establishing a regular line of credit. This can be an integral to maintaining financial stability in uncertain scenarios, but it comes at additional expense. Unless you can pay off loans immediately, you’re subject to interest charges. A business or individual “on the edge” is in jeopardy.
To get around this is to source finances through additional means. According to Plumfund.com, since its inception, Plumfund has become a: “Top-rated platform with more than $350,000,000 raised.” A crowdfunding application can help you use your influence to raise necessary funds in a pinch.
Skip The Loan
Additionally, crowdsource solutions can provide seed money that isn’t lent at interest. It’s easier to get to a “cruising altitude” of stability because you’re not paying creditors back. Still, you can’t use such a funding operation as a primary means of income; it will eventually run dry.
You need to consolidate expenses in other areas as well. For example, look at the money businesses pay to process credit cards. When it comes to B2B transactions, DharmaMerchantServices.com can: “…help
In your personal life, find areas where you’re overpaying and fix them. If you’re paying $50 months to go to the gym and all you do is use the stairmaster, find a skyscraper with an open stairwell and save $600 a year.
Cloud computing is another expense that can be diminished. Businesses outsource infrastructural computational operations, if they’re bold enough. Many businesses are able to get the same utility they would from on-site data centers. Individuals can use the cloud, too.
Instead of paying thousands to purchase, install, upgrade, maintain, and troubleshoot your own system, you just pay a monthly fee and have both the support and computational power you need. At least, that’s how businesses look at it. In your own life, technology solutions like IoT and smartphones can save you time and money.
This has even gotten to the point where you can work entirely from home. Well, what’s another expense in your personal life? Commute.
You are able to work from home via the cloud with BYOD, or Bring Your Own Device solutions. It’s a win-win for the business and you, as both of you save.
Consolidating Optimization Strategies
You want to streamline other areas which induce recurrent expenses. If you can transcend a certain tech area through an innovation like the cloud, do so. Act quick and you’ll have an edge. Businesses do this all the time, and such practice is worth personal application.
It’s easier for a small company to transition entirely to new operational protocols than it is for a larger one. It’s even more easier for an individual to upgrade their financial practices than a small business. So personally consider things like crowdsourcing, infrastructural reduction solutions like commute cutting, and following tech trends to facilitate personal convenience.
Kevin Bennett is a super-connector with ManageBacklinks.io who helps businesses with building their audience online through outreach, partnerships, and networking. Kevin frequently writes about the latest advancements in the SaaS world and digital marketing.
Save More Money in 2018
Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.