As a small business owner, there’s no shortage of responsibilities. There’s always another task on your plate, some of which are more impactful than others.
While you may have someone on your team who assists with financial-related decisions, that doesn’t mean you should remain out of the mix.
Furthermore, you should also consider the potential impact of your small business on your personal finances, and vice versa. Here are three overlooked financial tips that could help you make more informed financial decisions in the months to come.
1. Bank Loans Aren’t the Only Option
Is your small business in need of money? Regardless of the reason, you’re likely to turn some (or all) of your attention to traditional bank loans. And while there’s nothing wrong with that, it’s not your only option.
You should also take into consideration other ways of obtaining cash, such as invoice factoring. This gives you access to the funds you need, without taking on debt. It can also save your accounting team — if you have one — quite a bit of time.
2. Life Insurance is a Big Deal
This is important on two fronts. First off, with life insurance, you can be confident in the financial well-being of your family upon your death. That holds true even if you can only afford a simple burial policy at this time
Secondly, consider if life insurance is applicable to your small business. A good example of this is “key person insurance.” It’s a form of both life and business insurance, meant to protect your company in the event that a key person — such as yourself — passes on.
3. Your Home is an Asset
For many people, the home they live in is their biggest asset. If your small business is in need of a cash injection, you can use your home in many ways.
A home equity loan or line of credit allows you to tap into the equity in your home to use however you best see fit. Another option is a reverse mortgage (eligibility requirements can be strict), as you can access the equity in your home.
The takeaway of this article is simple. Don’t get so caught up in the traditional way of doing things that you overlook other financial avenues that could work in favor of you and/or your small business.