As a business owner, we all realize that risk is something that is ever present.
We have to evaluate constantly if we need to take the plunge in order to improve out current standings.
Often we find the call to temptation so strong that is supersedes our common sense.
Here are 4 great common sense ways to minimize risk with your business.
Rent-Depending on what you do, you should probably rent your office space.
Locking your company or worse your personal name into a mortgage (other than your home) is downright scary.
One never knows what tomorrow may bring, and renting allows for a cheaper if not a quicker out.
Buy Used-No one said you had to buy the newest and best.
Cars, heavy machinery, and big ticket items like furniture should be bought used when possible.
Definitely make sure it is a reputable source, but who can really tell between a gently used copier and a brand new one.
Ask yourself, "Who am I trying to impress?" Unless your clients are complete snobs, you should go used.
Pay Cash- There is no buying power better than the almighty dollar.
Waving cold hard cash under the nose of a salesman has interesting effects on them.
Lower prices, better negotiation, and the power walking out on a sure sale will certainly help salespeople see things your way.
Not to mention, credit cards are like paying with cash, only you pay the amount of the item you purchased plus 18%.
Cash is king.
Outsource- When possible, use someone's expertise besides your own.
Why tangle yourself into unnecessary employees? Not only will you have to deal with the "people issues" but you are also stuck with their limited knowledge base, limited network, and costly skills.
By outsourcing key departments like IT, HR, and Bookkeeping, you can save yourself annual salary costs.
Because outsourced work is not typically done full time, you save on all the hours that you are not using with them.
And when you are using them, you are getting the highest level of expertise, instead of relying on your spouse's sister that is out of work right now to help manage your company.
Overall, good judgement can go a long ways when it comes to reducing your risk in business.
Ask yourself when faced with a tough decision,"What would my business mentor do in this situation?" Or you could pretend that you have a "Board of Trustees" and see if your questionable purchase would fly past them.
The choice is yours, make it a wise one.
We have to evaluate constantly if we need to take the plunge in order to improve out current standings.
Often we find the call to temptation so strong that is supersedes our common sense.
Here are 4 great common sense ways to minimize risk with your business.
Rent-Depending on what you do, you should probably rent your office space.
Locking your company or worse your personal name into a mortgage (other than your home) is downright scary.
One never knows what tomorrow may bring, and renting allows for a cheaper if not a quicker out.
Buy Used-No one said you had to buy the newest and best.
Cars, heavy machinery, and big ticket items like furniture should be bought used when possible.
Definitely make sure it is a reputable source, but who can really tell between a gently used copier and a brand new one.
Ask yourself, "Who am I trying to impress?" Unless your clients are complete snobs, you should go used.
Pay Cash- There is no buying power better than the almighty dollar.
Waving cold hard cash under the nose of a salesman has interesting effects on them.
Lower prices, better negotiation, and the power walking out on a sure sale will certainly help salespeople see things your way.
Not to mention, credit cards are like paying with cash, only you pay the amount of the item you purchased plus 18%.
Cash is king.
Outsource- When possible, use someone's expertise besides your own.
Why tangle yourself into unnecessary employees? Not only will you have to deal with the "people issues" but you are also stuck with their limited knowledge base, limited network, and costly skills.
By outsourcing key departments like IT, HR, and Bookkeeping, you can save yourself annual salary costs.
Because outsourced work is not typically done full time, you save on all the hours that you are not using with them.
And when you are using them, you are getting the highest level of expertise, instead of relying on your spouse's sister that is out of work right now to help manage your company.
Overall, good judgement can go a long ways when it comes to reducing your risk in business.
Ask yourself when faced with a tough decision,"What would my business mentor do in this situation?" Or you could pretend that you have a "Board of Trustees" and see if your questionable purchase would fly past them.
The choice is yours, make it a wise one.
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