How your personal finance saving can help your business
It’s no denying that the world is a different place now than it was eighteen months ago, and we at Lombard Accountants understand that your business has inevitably changed too. When you started your company you probably dreamed about flexible hours and highly profitable, stimulating work. You built your company up and then Covid came along and made you reassess everything.
Whatever you previously dreamed of or planned for must be reconsidered due to the impact of Covid. It’s likely that what you want personally from the business hasn’t changed, just the realisation that it will probably just take longer than expected for your company to recover to where it was pre covid and for your profit margins to return.
But now with the world beginning to open up and businesses reopening you can start to reassess your goals for your company. Seeing the post covid world as an opportunity can help your business and you begin again and make your new goals a reality.
You will need to face this new era for your company with a new sense of prudence in order to get the best for your company. Trimming what you need personally from the business for the next year or two will give you the best footing for your business to recover.
Consider the following tips from the Lombard Accountants team to help you scale back your personal spend to help your company in a post-Covid world:
- Can you still have the lifestyle you want with less cash strain on the business? Making some changes to your personal spending will always help in this area. Bring your own coffee to work rather than buying it out all the time, little changes like this can help in the long run.
- Can you refinance your personal and/or housing debts to achieve lower interest rates or reduced principal repayments?
- Can you modify your role in the business to reduce stress or workload? Asking staff to take on more responsibility isn’t a sign of weakness on your behalf, it simply means you understand how important your time management is.
- Will these needs be different in the medium term? i.e. can you hunker down for twelve months or until the business’s profitability and cash flow improve?
Lombard Accountants understands that there are no shortcuts here. The discipline of personal budgeting with ongoing monitoring of your expenditure is essential. The good news is that the process is both empowering and enlightening at the same time. You’ll be amazed at where personal savings can be made and will feel much more in control of your business.
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