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The Importance of Emotional Intelligence in Business Negotiations

By Frank Williamson, Oaklyn Consulting

Developing the capacity for emotional intelligence can make the M&A negotiation process faster and smoother by encouraging cooperation and respect for the needs of the parties involved.

The business negotiation process almost seems geared to bring out people’s stress behaviors—particularly when it involves sensitive situations like the sale of a company. However, those managing the negotiation process have a powerful tool at their disposal to make the process more productive and pleasant, provided they’re willing to invest the time and effort. Developing the capacity for emotional intelligence can make it easier to sidestep conflict, encourage cooperation, and respect the unique decision-making process of each person at the table.

Emotional intelligence is the ability to be aware of your own emotions and those of others, to regulate your emotions, and to use your insight into others’ emotions to guide your behavior in social situations. It can be broken down into four primary categories:

  • Self-awareness: A consciousness of your own emotions, motivations, and impulses.
  • Self-management: Exercising self-control over your behavior, being able to adapt to circumstances that are out of your control, being trustworthy and conscientious, and managing emotions in non-destructive ways.
  • Social awareness: Empathizing with the experiences and perspectives of others, and successfully understanding and navigating social environments.
  • Social skills: Skills for specific situations, including conflict management, persuasion, collaboration, rapport-building, and leadership.

In the workplace, emotional intelligence can be applied to help team members bridge their personality types and work styles, helping their company achieve success. This approach, called team emotional intelligence, helps team members develop the ability to use emotional intelligence in their interactions with one another. Every workplace is filled with a variety of personality types, but by using team emotional intelligence to give equal deference to each person’s emotions, behaviors and interests, you can achieve higher levels of cooperation and collaboration.

For businesses that are preparing for a sale or contemplating a strategic acquisition, team emotional intelligence can make the period of transition less stressful. Once an organization has laid the groundwork internally to work in this style, executives often also begin to think differently about the way they approach external business activities, such as negotiations.

During the M&A negotiation process, executives use quantitative metrics and other data as they weigh their options in pursuit of the best deal available. But incorporating emotional intelligence can mean that qualitative metrics, such as the team cohesion or resilience of a potential partner, can become equally important considerations.

Let’s look at how emotional intelligence can make a difference for both the buyer and seller:

Emotional intelligence for the seller

Emotionally intelligent executives eyeing a potential sale will inherently have an interest in finding a suitable home for their team, since they’ve worked to build them into a productive, cohesive unit. They’ll probably have a clear idea from the outset of what a potential buyer looks like, rather than hoping that a potential buyer comes along that feels like a good fit. While they’re not going to ignore certain basic criteria of a worthy buyer, such as one offering an acceptable price, a manager invested in emotional intelligence will be able to describe a good fit intelligently and actionably. This winnowing out of unacceptable candidates can lead to a much smoother, faster search process.

They’ll also likely realize that the strength of their team is a potent selling point. Emotionally intelligent teams tend to have higher levels of job satisfaction and general employee happiness, which leads to more productivity during work hours, fewer mistakes, and better results. For a seller, this is added value that should be mentioned to potential buyers.

Emotional intelligence for the buyer

Anyone who’s participated in an M&A deal knows that some of the hardest work takes place after the papers are signed. Merging teams, putting new leaders in place, creating new workflows, and getting everyone on the same back-end system can take months to do, and a buyer trying to bring together two groups of employees with different work styles may have a hard job ahead of them.

Buyers can increase their chances of post-deal stability and success by:

  • Determining the behavioral strengths and weaknesses of their current team, and how a merger or acquisition might bring complementary personalities or skills from the partner company.
  • Understanding how the other company’s team functions and communicates on a day-to-day basis, which members work best together, and what interpersonal issues exist.

Managing the M&A process using emotional intelligence

Finally, emotional intelligence can also affect the structure of the negotiation process itself. For instance, a party managing the process, such as an investment banker, might design a schedule that gives the right level of flexibility for a buyer or seller who doesn’t want to be pressured into a hasty decision. Because some people are more comfortable discussing complex topics in a one-on-one setting, the process could mix two-person meetings with larger group conversations. Difficult or contentious issues can also be managed carefully to keep them from leading to conflict.

While business negotiations can be a stressful period, leaders can make the process less complicated by using emotional intelligence to build healthy internal team dynamics, and by bringing that same awareness into interactions with a potential seller or buyer. The result will be a more stable, supported team that has the tools it needs to flourish.

Frank Williamson is the founder of Oaklyn Consulting, a consulting firm that helps investor groups and private businesses, from startup to middle market, with mergers, acquisitions, capital-raising, investor relations, succession and other strategic corporate finance decisions. Oaklyn Consulting does not work as a broker but as an extension of clients’ boards and management teams, charging time-based fees for investment banking advice.

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This Bootstrapped SaaS Startup Is Helping SaaS Products Beat The Funding Chase

by Inc42 BrandLabs

Be it Zoho, FusionCharts, Appointy or Wingify, there have been plenty of examples of SaaS startups bootstrapping their way in the Indian market. Of course, as with any other bootstrapped startup, the sense of independence that comes with having your own business, not caring about exits but focussing on growth, is liberating for founders. And in the case of the software-as-a-service industry, the success of the bootstrapped startups is a source of inspiration for new ventures.

The overall SaaS industry in India is estimated to have a market value close to $1 Bn, with a CAGR of 36%. And with enterprise tech startups Druva and Icertis making it to the unicorn club in 2019, it is not surprising to hear that the Indian market presents incredible opportunities for enterprise tech startups. Given India’s strengths in software development, SaaS startups have also been able to find ready buyers for their products in the global market.

But the first few years for any SaaS product is finding the right audience, the balance of features and agility and getting feedback from users or testers. And of course, there’s the question of how to attract funding to go after the big clients.

What Product Hunt does for web and digital products and services, PitchGround is attempting to replicate for the SaaS sector in India. In fact, PitchGround is taking it a step further as it is a SaaS company helping other SaaS companies raise quick capital without losing equity, getting early adopters and customers as well as feedback on improving the product.

Founded in 2018 and a bootstrapped startup itself, PitchGround claims to be profitable since day one and is helping other SaaS companies with the same goal.

“Compared to being funded, bootstrapping requires resourcefulness. Founders need to find unique and original ways of funding their growth/product. Yes, you grow slower but you maintain 100% freedom and independence,” – Udit Goenka, founder, PitchGround.

PitchGround: Growth As A Service for SaaS Startups

Three years ago, Goenka was trying to solve the pain points for salespeople with an application called FunnelBake. When it was time to launch the product, he hired a consultant to bring early adopters for the app. Unfortunately, the consultant’s advice did not bring in the results, but Goenka still had to pay them for the service.

This experience led him to dive deeper into the problems of launching a SaaS product—he met other SaaS startup founders who suffered the same fate as him at launch. This became the origin point for PitchGround.

“We are one of the fastest-growing SaaS marketplace and crowdfunding platforms. Our aim is to connect early-stage SaaS companies with early adopters and customers who are hungry to try out new products.”

What sets PitchGround apart from the competition is the education-first approach. “We provide a crazy amount of content to educate our audience about not only the product but also about the whole topic. We do webinars, record videos, interview founders and more,” added Goenka.

The founder told us that PitchGround is founder-focussed, which means that it has conversations with founders using the platform regularly to discuss new ideas, approaches and more. Businesses can also see how many users they have gained through PitchGround on a dashboard along with tracking usage and feedback.

Before working with any client, the team at PitchGround internally assesses the SaaS product, to understand whether it will be able to handle the increased traffic after it debuts on the platform, whether the startup has enough resources, team members and more. With actionable tips, PitchGround then helps startups improve their offerings by improvements in UI/UX, tech, customer flow and more.

Once the product is ready, PitchGround then structures a Lifetime Deal campaign, which is a special offering where customers pay once instead of monthly or annually. “Deals are often time-limited to just a couple of weeks which incentivises customers to take action. For a SaaS company, it means a huge influx of cash in a short time frame. Usually in the range of an average seed funding.” Goenka told Inc42.

PitchGround works on a revenue-sharing model with startups. This helps SaaS startups by giving them the strength of an enterprise-grade marketing team without paying a single cent upfront, explained Goenka. He gave us the example of MarketPlan.io, which raised more than $83K in just 21 days on PitchGround.

Bootstrapped PitchGround Is Helping SaaS Products Beat Funding Chase

The startup not only helps SaaS startups gain early adopters but also helps them get feedback from users to modify and improve their products.

“Another success story would be of a company called ReThink (rebranded from Publist) which leveraged our platform to acquire as much user feedback as they could. Thanks to that, ReThink was able to secure multi-million dollar funding to massively boost their growth,” Goenka claimed.

Overall, PitchGround claims to have supported over 27 SaaS startups and helped them earn $1.6 Mn collectively in revenue.

The Journey Ahead For PitchGround

For any enterprise tech startup, a strong network of business partners is crucial for growth and scaling. This is especially true in the SaaS space as it helps build product credibility through real users. Claiming to have a network of over 50K B2B partners through ads, email lists and more, PitchGround is providing users with an easy way of attracting early adopters.

“We also run ads on multiple platforms, such as Facebook, Instagram, Google and more. On top of that, we have collaborated with influencers from the online marketing industry,” added Goenka.

While building PitchGround, one of the biggest challenges was to get transactions flowing in the first three months of their operations. That is when Goenka and his team decided to go with the approach of building a community of early adopters, which led to the growth that PitchGround could use to scale further.

As startups, PitchGround also had a hard time building a team to complement its operations. Being a huge admirer of ConvertKit founder, Nathan Barry, who built a company with 39 remote employees, Goenka also decided to start PitchGround as a company with remote workers.

Operating in multiple cities, the team of PitchGround is 100% remote making for a unique company culture.

Goenka revealed that Indian founders were the top earners through PitchGround and also had the most number of launches.

While talking about the future plans for the startup, Goenka said, “When it comes to the product and the scope of the activities we do, we want to widen our area of interest and add more unique, tech solutions. And we’re already building these things in the background and later in 2020 and 2021 we will start revealing them.”

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Must end soon! But not too soon! The catch in time-limited sales tactics

As Christmas shopping ramps up, you may be getting a lot of emails offering you attractive discounts for a short period only. You may see flash sales or special deals that exhort you to “buy now” to avoid missing out.

These digital “time-limited” offers, as they are called, are actually an old sales tactic.

Those in the game of selling cars, for example, have long used the trick of alluding to that other very interested buyer who’s likely to return and snap up the bargain that’s before you. Telephone salespeople routinely offer deals that must be accepted during the call. Want time to think about it? Too bad.

Online time-limited sales work on the same basis, but with technology taking it to a whole new level. Now retailers can bombard you with offers that are highly customised and super-short – a deal, perhaps, for something you might have been searching online for, and now available at a discount only until midnight.

But for these tactics to work, our research suggests, requires finding a Goldilocks zone between being too pushy and not all. Time needs to be limited to deter you from searching elsewhere for a better deal. But paradoxically you also need enough time to convince yourself that buying is the best decision.

Experimenting with time limits

To find out what makes time-limited offers effective, I and my colleagues Robert Sugden and Mengjie Wang from the University of East Anglia ran experiments to see what leads people to accept or reject such offers.

What we found is that these offers leverage risk-aversion. That is, the more you dislike risk, the more likely it is you will take the bait and buy now.

In our experiments, using university students, we asked participants to complete 30 “price search” tasks. These tasks involved giving participants a “budget” and asking them to buy a product from six different price offers, shown to them sequentially with a few seconds between each. Any unspent money they got to keep.

In half of the tasks they could consider all six offers before making their choice. In the other half, one of the first three offers would be time-limited, lapsing after either four or 12 seconds, which they could only accept before the next offer appeared.

We also varied, when participants accepted a time-limited offer, between showing them no more offers or showing all remaining offers immediately. This was to test if greater feedback (increasing the possibility of regret) reduced the probability of a time-limited offer being chosen.

Participants then did 15 related risk-taking tasks based on their choices in the tasks with time-limited options. This helped us determine what was going on with their choices.

A time paradox

Overall our results point to choosing time-limited options being linked to risk aversion. People generally prefer to secure a certain cake now over the uncertain possibility of a better cake in the future. We really do believe the old proverb that a bird in the hand is worth two in the bush.

But there was a catch – and a big one. Somewhat paradoxically, people also need to think things through to jump on the time-limited offer. Time-limited offers were accepted more when participants had 12 seconds to decide rather than four seconds.

This indicates people need enough time to reflect on the task to decide they are better off going for the “safe” deal.

As we warn in our paper, one should be wary about extrapolating too directly from laboratory behaviour to real markets, but our results suggest time-limited offers do not rely on limits to the consumers’ ability to make a rational decision. When they work it is because they are mechanisms of search deterrence – restricting the consumers’ opportunities to compare available offers – amplified by risk aversion.

So businesses may be shooting themselves in the foot when they create offers that are too short, too pushy. If you’re like most people, you need time to reflect on the risk of not buying. If the offer is too fast and furious, you’re likely to just be turned off.

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What Is A Sales Process? Five Effective Sales Tactics To Close

A sales process is a system comprising a set of steps that the salesperson can follow to understand at which stage of the sales cycle the prospect is. A valid sales process can help salespeople shorten the sales cycle, and to align sales teams around common goals and processes.

Why sales processes matter

pirate-metrics
Venture capitalist, Dave McClure, coined the acronym AARRR which is a simplified model that enables us to understand what metrics and channels to look at, at each stage for the users’ path toward becoming customers and referrers of a brand. This is an example of a journey potential customers might go through. This same process can be used by salespeople to target specific actions throughout the sales process, thus shortening the sales cycle. 

Closing a deal is the only thing that matters in the sales process. You can have many conversions and several people interested in your product or service, however, if no one decides to make that last step, you are wasting time.

Regardless of whether you work as a sales rep or as a founder of a business, closing a sale should be at the top of the “must-do” things on your daily activities list.

Many believe that selling is about showing up, pitching the prospect correctly and sometimes answer some of the prospect’s objections. Unfortunately, it is a little bit more complicated than that. Although many might try to “sell” you the secret formula for sales success (see the irony in that?), there’s no such thing as a ready-made method to close a sale.

Every situation is different. Every prospect has a different need. Every salesperson sells differently.

Selling is a combination of science and art. Understanding which factors can be controlled and how you can steer the wheel in your favor is the key to close more deals and take your business to the next level.

What Does It Mean “Closing A Sale”?

Understanding what the top salespeople do daily is going to give you an edge against your competition. One of the old adagios in Sales is “Always Be Closing.”

Top performers have this in their mind constantly; they work closely with prospects and get them to the finish line hand in hand. But, is it all about closing?

One of the biggest misconceptions for those who are not involved in sales as a profession is that closing a sale means signing a contract. To be successful in sales, you need to understand that the sales process is made of several steps and top performers break down this process in a series of micro-sales (or micro-wins).

Each step of the funnel takes the prospect a little bit closer to the big commitment. Implementing the following strategies will increase your chances to be successful.

What Do You Need To Do To Be Like A Superstar?

Before diving into effective strategies to close a sale, it’s important to lay down the basic rules that will differentiate you from the rest of the sellers out there in the market. Remember, selling is a mix of science and art. The science is made of strategies, the art is made of attitude.

To be successful in sales, you cannot just apply great strategies and wait for them to work. Selling is a tough job and needs you to be smart about it. Understanding the behavior of the best salespeople, regardless of their industry, will give you some ideas on what to work when it comes to you.

1. Believe In What You Sell

This might sound silly, however, there’s a lot of people who go out there and speak with prospects who constantly doubt their solution.

If you don’t believe that your solution is the best, how can you convey its value to the prospects you are talking to? Saying that you have the greatest service or product in the market and meaning it with words and behavior is very different.

2. A “No” Is Just One Step Towards A “Yes”

Understanding that getting Nos is part of the sales process will get you far ahead of most of the competition. Top performers are ready to get a rejection and move on. They are ready to close an opportunity if it doesn’t move forward.

The best salesmen move quickly and don’t waste time on a “no”. If you want to be successful at this game, you need to understand that rejection is a natural part of the process. To be the best, you need to understand what went wrong in the process.

Was the wrong prospect? Was the right prospect but too early for them? Was the pricing too high? Do a post-mortem analysis of rejection and learn from it, then move on and start again.

3. Talk About Value Not Features

Another common mistake that many do while selling is to talk about the features of a product or service. Do you really buy that camera because of the latest features or because the end result will be a fantastic photo?

Do you really buy that laptop because of the high-speed RAM or because you don’t want to be frustrated anymore when working on several projects at the same time? Features vs. value is one of the key points to understand in the sales process. Features are supporting arguments to the value your product or service brings to the prospects.

4. Stop Talking, Seriously

When you are the seller, there might be an inner expectation to be the one leading the conversation talking. You are indeed in the driver seat, however, it is crucial to understand what is the best way for you to control the conversation.

Great salespeople don’t get lost in their own words, they ask questions, they want to know more about the prospect’s needs.

What Are The Most Effective Strategies For Closing A Sale?

Moving onto the science part of the equation, there are strategies that you can implement in your daily activities to achieve better results.

It’s important to understand that implementing strategies alone while forgetting the art part of the equation won’t necessarily get you to the finish line.

1. Understand The Right Prospect Fit

Lead qualification is probably the most important step in the sales funnel. If you qualify a lead in the wrong way, you might end up wasting your time trying to solve a problem that doesn’t exist. It’s crucial to focus only on those leads that meet your criteria as a company.

Before starting reaching out, you need to understand the answers to these questions:

  1. What type of company do I want to work with?
  2. How many people work there?
  3. What industry are they in?
  4. What title does my decision-maker hold?
  5. What’s the minimum investment the prospect needs to make so that everything is worth the effort?

All these questions should be clearly answered before you even start reaching out.

Almost two-thirds of all lost sales are the result of a poor qualification process. You might be thinking that because selling is a number game, then you need to reach out to as many people as possible, however, by doing so, you will diminish the opportunity to close the right deals for your company.

Not every sale is a good sale. To be successful, you need to assess the opportunity cost of closing and managing a bad account.

2. Don’t Give Up Too Early

As said, to be successful in sales, you need to break down your sales funnel into micro-steps. Aim at getting the prospect one step at the time ahead. You can’t expect to get the prospect to sign with you after the first meeting.

There’s a 2% chance that a lead will jump on working with your company after talking with you just once. Following up is the key to success in closing a deal. It has been reported that 50% of the sales happen after the 5th contact with a prospect, however, most sales reps give up after 2 touchpoints. Yes, you read that right. Prospects will either ignore you or find an excuse not to talk with you on average four times.

Following up should be a constant activity through the sales funnel, not just limited at the prospecting phase. How many times have you sent out a proposal and the prospect went dark? When “touching base” with them, did you just “ping them” or sent them valuable additional information to help them make the decision?

The average sales rep tend to “just follow up” with a prospect by sending a generic email and asking what’s going on the other side. All that comes across when you send that email out is “Hey, why haven’t you bought yet from me? Please, I really need this deal!”.

Following up for the sake of doing it yields no value. Make sure to be relevant and share with the insightful prospect information. It could also pay off to be bold. If the prospect is not answering maybe she is not ready to buy; why not just ask that?

3. Build Rapport

It’s one of the oldest saying around and yet so many people forget that. In sales, people buy people, not products. It is a basic thing but we often think that we need a better presentation, a better proposal, a better discount, and whatever else to close a sale. The reality, however, is that you just need yourself, your true self.

Prospects want to be treated like humans, not like banks. They want to talk to someone who cares about their situation and needs. Stop harassing them with useless proposals without even knowing what they are looking for. Take the time to build a long-lasting rapport with a prospect by being genuinely curious about what’s going on in their world. Put them in the center, not your product, service or company.

Don’t fall in the so-called sales disconnect. Have you ever wondered what the prospects want to hear in the first conversation with a salesperson?

Most of us will think that the last piece of information we should share with a prospect the very first time we are talking with them is a price, well, think again about it, pricing comes at the top of the list of what prospects care. Are you truly listening to your prospects’ needs? Because 69% of them think that sales reps are too focused on their own interests.

4. Create A Process For Objections Handling

The sales process is far from being a nicely paved highway. In fact, it’s more like a mountain road with a lot of bumps and obstacles to it.

On the way to the finish line, you will encounter several types of objections, these are a natural part of the “sales dance” you start with a prospect.

However, to be successful and make sure you focus on the right points, you need to be prepared. One of the most common mistakes organizations make is to forget to work on a simple, yet effective, objection handling document.

Anticipating and dealing with objections in the right way can simplify your way to success. Ignoring this step will leave you and your team in the uncertainty of the moment. Every answer you will give will be depending on the current state of mind and moreover, it might make you look like you don’t know what you are talking about.

There is no unified approach to objections handling, as the process might be different depending on the industry you operate. However, you can start to build a document by writing down the most common categories to which you usually get objections and think about those questions prospects might have.

5. Don’t Forget To Ask For It!

The biggest mistake in the sales process is not to ask for the sale. We often get caught up in minor actions and solving problems that we forget to ask for it. It’s a natural evolution of the sales conversation and yet so many people are afraid to ask the most important question.

Understanding how and when to ask for the sale is crucial to make sure you take the prospect through the finishing line. Even the most experienced sales reps tend to delay the magic moment because deep down inside them, they fear rejection.

Remember, as said earlier, a “no” is just another step towards the final “yes”. Although it’s normal to feel attached to a deal, especially if it is a big-ticket prospect or you have been working on it for months, delaying the key question will only make you lose important time.

So, when is the right moment to ask for it? Like anything else, there’s no exact moment in the sales process when you can or should ask for it, however, if you start thinking that you should go for the question, then probably you are already too late.

Selling is a process, if you have done your research, made sure the qualifying process was correct, ensure that it is the right fit for your company and answered all the important questions, then it’s probably the time to ask for the sale.

Conclusion

When it comes to sales, a lot of people deal with a different set of emotions. Not everyone is ready to make the right effort to close a sale.

Selling takes time, preparation and above all a sense for people. Remember that you are talking to another person. The moment you stop seeing the person in front of you as such, but she becomes just a number, then you are going to fail at this game.

The five strategies mentioned above for closing a sale will get you on the right path to create value for your prospect and increase the success rate for your company.

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Small Business Finance Tips For Better Money Management in 2020

Unlike large corporations, small businesses can be risky and competitive but also malleable.

Given this, you might have to deal with lots of problems and administrative work, all of which will require your focus and attention. Part of this is knowing how to manage your finances and money well.

If you’re a small business, here are some financial tips you can consider to manage your money and finances better.

 Easy Small Business Finance Tips

Small Business Finance

Keep Personal, and Business Expenses Separate

With small businesses, it can be straightforward to mix up personal and business expenses. However, since you are already reading this, you won’t make the same mistake novice entrepreneurs often do. Mixing those two together will create a multitude of problems in your accounting records, taxes, and liabilities.

Maintain a clear distinction between your personal and business expenses so as not to mix them up. One of the ways you can do this is to have separate credit cards—a corporate credit card and a personal credit card. All your personal expenses go to your personal card, and all your business expenses go to your corporate credit card.

Invest In Technology

There will be a lot of administrative tasks that accompany starting a small business. To spend minimal time in administrative duties and help you pay attention to running your business; instead, you need to invest in technology. For example, you can invest in software like Wave to make invoicing more convenient and time-efficient for you.

 Pay Taxes and Bills On Time

When you have a small business, it’s still crucial that you pay your bills and taxes on time. Little delays in payment will cause you to pay unnecessary penalty fees that will eat into your revenue and income. These bills include your corporate credit card, utility, vendor, and contractor bills.

To avoid this, you can make calendar reminders alert you when it’s time to pay your bills. This is just one of the ways you can remind yourself to pay on time.

Review Costs and Operational Expenses

Similar to your personal finances, you must also practice frugality when it comes to the expenses in your small business. At times, there can be unnecessary expenses or costs that you can try to bring down. This will make a ton of difference in your bottom line.

To do this, you can start reviewing all your operational expenses, including but not limited to, the following:

  • Salary
  • Utility
  • Employee benefits
  • Office supplies
  • Transportation allowance
  • Marketing
  • Insurance premiums
  • Finance costs
  • Rent
  • Inventory costs
  • Research and development costs

Once you do a scrutinized review of your expenses, you’ll see where you spend the highest and where you need to reduce, budget, or adjust.

For example, if your utilities hold a large chunk of your expenses, you can lower this down by turning off the aircon once it’s 5 pm. You can also encourage employees to turn off the lights when they’re not in use. To lower down office supplies expenses, you can even start going paperless and transferring everything digitally. In addition, this will also protect your important documents in case of a fire.

On the other hand, to lower down the costs of goods sold, you can start negotiating with suppliers for a lower price. Most especially if you have a long relationship and good credit with the supplier, you have more leverage to get lower prices.

Consider Getting Insurance

Although insurance might seem like an additional expense, you will be thankful to have it when something happens. You’ll never know if a tragedy or emergency will hit your business, so you should be prepared for anything.

Getting insurance will provide you with peace of mind in case a calamity or problem strikes. For example, in case there’s a fire in your building, your insurance will cover expenses for rebuilding your office. On the other hand, if one of your agent’s cars gets into an accident, your coverage will also be able to cover the expenses for repair.

Lease Your Equipment

Because you’re running a small business, buying equipment might not always be the best idea. Because money will be tight, leasing out equipment compared to buying it will help lower down your cost, manage your cash flow, and properly allocate your funds. The funds that were supposedly used for purchasing equipment can be used to make your business bigger instead.

Conclusion

Having a small business doesn’t only entail monetary capital and ideas; it will also require you to find sustainable ways to keep your finances in check. Preparing your finances and managing it well bears as much importance as your business and marketing plans.

Once you follow these tips, you will be able to make better decisions when it comes to your finances.

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