According to global research on small businesses, about 32% of startups fail before two years, 51.1% within five years and by the tenth year, only 33.6% survive. The 15-year survival rate is 25.7%. One of the major factors that contribute to this failure is their inaccessibility to funds. Of course, there are other sources of funding like investment and loans, but they may not be readily available for most small businesses.
However, they can have a savings culture, not only to manage their business funds but also enjoy the following benefits:
1. To keep your business running optimally:
One way a small business can easily keep running is to have money set aside from its profit, no matter how little. A certain percentage of its income consistently put aside will make the difference between a struggling business and one that is self reliant. A small business that depends largely on external funds to run has lower chances of survival.
2. To position yourself for growth:
A small business owner needs to always think of ways to pivot and remain competitive in the market. Having a savings plan makes it possible to take advantage of such opportunities to grow and expand without breaking much sweat. It becomes harder without any savings.
3. To help your business remain flexible:
The modern market is a dynamic one, with customers constantly evolving, new products introduced everyday and more competitors flooding the scene. The only way a business can remain relevant is to learn how to easily adapt and cope with these changes. This becomes more affordable with a healthy savings plan.
4. To protect your small business against crisis:
The business terrain is quite unpredictable, with governmental policies or economic developments sometimes threatening the future of small businesses. A savings plan will enable you to prepare for the worst even in the times of calm. With it, you are able to take steps that will give your business the leverage it needs not only to survive but also thrive in turbulent times.
Having a solid savings plan as a small business owner helps you to manage your funds well. However, it is not enough to just save, you need to use a savings plan that helps your money to grow at a high rate. You can start today by choosing one of these plans.