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Entrepreneurs: Are Your Personal Expenses A Drain On Your Business?

In an increasingly capricious economy, the world of small business is becoming increasingly perilous. Although most entrepreneurs love the way in which running their business offers them the freedom to pursue their passion without the constraints placed upon them by an employer or a boss, even the most successful business owners acknowledge that the world of small business is not without its risks. In order to achieve success in the small business world, one must invest in areas that can increase productivity, boost output and facilitate growth while still keeping their overhead costs under control. In many cases, that second part is easier said than done. By the time your creditors and vendors are paid off and your employees are looked after it can look as though there’s scant little left available to fund your lifestyle. Moreover, if your business debt is combined with multiple personal debts, meeting your existing financial obligations can place a serious drain on your business’ finances.

Image by Flickr

Image by Flickr

If the cost of living is dragging your business finances down alongside your personal finances, there are several ways in which you can decrease your reliance on your business’ income and invest more money back into your business…

Get better at savings

You likely have a savings account to help you to accommodate those unexpected costs like medical bills, household repairs or trouble with the household car. The trouble is that most of us simply aren’t getting the growth out of our savings that we deserve. Most high street savings accounts offer pretty pitiful rates of interest with an average of just 0.06%. If you’re to stand any chance at all of growing your money, you should switch to an online savings account. Online providers don’t have nearly as many overheads as high street banks and can therefore offer much more favorable interest rates.

Take the risk (and the legwork) out of trading

While a better account can help to boost your savings, most people know that you stand a much better chance of growing your money if you supplement your savings with a healthy investment portfolio. But growing a portfolio can  be a challenging prospect if the markets are a mystery to you. Fortunately you can trade quickly and easily and in a much more risky way by spread betting. Here you will see some examples of spread betting. This tax free form of trading is extremely simple. You simply bet long if you expect a commodity’s value to increase or short if you expect it to drop.

Monetize your knowledge

Most entrepreneurs massively underestimate the value of their knowledge and experience or how easily they can monetize the insights they have gleaned throughout their career in business. Speaking at events, offering consultations and mentoring to nascent or aspiring entrepreneurs or even monetizing your blog can all be profitable ways to turn your knowledge into cash.

Consolidate your debts

Your household debts can easily run roughshod over even the most carefully planned finances. Moreover, when you have debts outgoing to several parties it can be tricky to keep mental note of the repayment amounts, rates of interest and outstanding balances. Consolidating your debts with a consolidation loan will not only make your debts easier to manage, it will also improve your credit rating!

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