Running a business is hard work. As a business owner, every decision you make, especially regarding investments, can significantly impact your venture’s success and sustainability. It is important not to overlook some basic supporting investments that can fortify your business for the long term.
We’ll talk about five critical investments essential for any business owner, whether you’re a startup or have been at it for many years.
1. Process Automation
Basic process automation is critical for business owners to streamline operations and improve efficiency. By automating tedious and time-consuming tasks, business owners can drive quality and repeatability while freeing up valuable time to focus on strategic initiatives and customer relationships.
Yes, a simple software product purchase can often make a lot of sense, but you have to invest the time to select the best product and verify the ROI along with ease of implementation for your business.
From managing expenses to handling invoicing and payroll, automating operational tasks with an AI tool can save money and time, creating the capacity to innovate and develop new offerings.
2. Professional Accounting
Managing finances is a big part of running a business, but a remarkable number of small companies neglect basic accounting. Owners and CEOs often settle for financial reporting that is not timely, not correct and does not reconcile with bank accounts or credit card accounts.
One common issue, especially with young or small businesses is that some business owners think they can handle QuickBooks on their own to save money. Unless the owner has a finance and accounting professional background, this is often a terrible mistake that wastes enormous time and detracts from core operations of the business like winning and serving customers, etc.
A good accountant is a game-changer and helps take the business to the next level. And if this critical professional resource is flexible and part-time–dialed up or down as needed–then this enormous impact on the business is also affordable.
Accountants can also help with payroll management, ensuring employees get paid on time and accurately. Plus, they can provide valuable insights and advice on financial planning, helping businesses set goals and stay on track for success.
But perhaps the most significant benefit of hiring an accountant is the peace of mind it brings. By entrusting financial matters to professionals, business owners can focus their time and energy on what they do best — running and growing their businesses.
3. Business Credit Card
Every business has large and small expenses, and using a business credit card can provide various benefits. Business credit cards offer rewards that can be used for business or personal travel and provide access to business tools for better expense management.
Choosing the right business credit card can help streamline financial transactions and track spending more effectively, ultimately contributing to better financial management and decision-making.
4. Health Insurance
As the owner of your business, your health and well-being are not just essential for your personal life, but also crucial for the success and sustainability of your business. That’s why one of the first tasks on your to-do list should be securing health insurance coverage.
Many entrepreneurs, especially those in their 20s and 30s, don’t realize why this is so important.
Imagine this scenario: you or a family member suddenly face a major illness or injury. Without proper health insurance, not only would you be dealing with the physical and emotional stress of the situation, but you could also find yourself in a dire financial predicament. Medical bills can quickly pile up quickly, draining your savings and risking your business.
That’s why having health insurance is like having a safety net — it provides you and your loved ones with financial protection in case of unexpected medical expenses. Whether routine check-ups, emergency treatments, or long-term care, health insurance ensures you can access the necessary healthcare services without worrying about excessive costs.
But don’t just settle for any health insurance plan — take the time to shop around and explore your options. Consider coverage limits, deductibles, and network providers to find a plan that best suits your needs and budget. And don’t forget to shop options for Medicare if you’re eligible, as these government programs can offer additional support and benefits for business owners.
5. Formal Disaster Recovery Plan
Many small business owners overlook the importance of a formal disaster recovery plan. In fact, according to a poll by Insureon and Manta, a staggering 61% of surveyed small businesses admitted to lacking such a plan. To make matters worse, a similar percentage (60%) confessed to not carrying business interruption insurance — ƒan additional layer of financial protection that can help cover operating costs during business downtime.
Small business owners play a dangerous game of chance without a formal disaster recovery plan and adequate insurance coverage. In a disaster, they could face significant financial losses, prolonged downtime, and even the risk of permanent closure.
Small company owners should not wait until it’s too late. Consider taking action now to protect your business and secure its future. Invest in at least a semi-formal disaster recovery plan, consider business interruption insurance, and give yourself peace of mind, knowing you’re prepared for whatever challenges.
Ready to take your business to the next level? It’s time to start investing in supporting your business’s future. Whether it’s protecting your health, preparing for the unexpected, embracing new technologies, or optimizing your finances, the top five investments outlined in this article can set you on the path to success.
And if you need further guidance, consider hiring fractional help.
At BELAY, we have a full suite of Accounting Services including Bookkeeping, Controller, CFO Services, Accounting Clerks, Full-Service Payroll and Tax Support. And we can have you matched with an Accounting Professional as soon as next week! Reach out today to get started.