Is business going well? Have you secured longstanding clients, and see a rise in profit year on year? That’s fantastic- but dont use these successes as an excuse to rest on your laurels. If you want to give yourself security, futureproof your business and keep gaining traction there are plenty of things you can be doing. Here are just a few examples.
Buy Your Own Office Building
Spending money on rent is a bit of a waste. It’s accounts for a good chunk of your outgoings which in turn takes from your profits. You’re at the mercy of the landlord, and if they want to sell, put up the rent or refuse to let you make changes to the interior then you have to listen to what they say. Just like buying a home gives you financial security, the same applies to your business premises. Paying a mortgage each month isn’t much more expensive than paying rent, and in many cases it’s cheaper. Every penny you pay is going towards something you own, and you have capital tied up in the building which you could sell to release if you ever really needed to. If you know you’re in it for the long haul with your company, raise a deposit for business premises and purchase instead of renting.
Manufacture Your Own Products
As a medium sized business, there’s a good chance that you’re outsourcing your manufacturing. And it makes sense, running a plant is a massive job and not something all businesses are equipped to deal with. However, if you make products and this is a large cost then it could be a smart move to look into having your own factory created. While you will have to foot large upfront costs, once you’re up and running manufacturing your own products will be far cheaper and can save you money as well as giving you more control over your business. Just be sure to invest in the right equipment to keep things running and minimise breakdowns. An air dryer for example will remove moisture from compressed air systems, helping them run properly for longer. Regular maintenance of machines and equipment can pick up small issues before they turn into larger and more expensive ones.
Invest in Your Own Fleet
Finally, if you ship bulk or large products overseas- have you ever considered investing in your own fleet? It might seem like a massive job, but again once everything is up and running you save yourself money, and it’s another place you have capital stored giving you security. There are pros and cons so be sure to weight these up, however it could be another way to give yourself more financial security.
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