(Newswire.net -- October 11, 2020) -- Navigating the world of finance is far from easy, despite what motivational speakers may say. It is obvious though, that being financially sound is integral for the smooth running of businesses. Additionally, poor handling of finances can have far-reaching consequences on any business. Luckily, the world of finance isn't all doom and gloom. With these finance tips, you can positively change the way you conduct business, and better position yourself financially.
1. Get a business mentor.
You could trust your instincts and brave it alone, but having a business mentor is actually very beneficial. An ideal choice is someone well-known, with a proven track record of excellence. More so, a credible mentor will not only come with a wealth of experience, but will also have unlimited networking opportunities.
It's not only small businesses that use mentors, as large organizations depend on them too. For example, Baylor College of Medicine recently appointed Christopher Sarofim to its board of trustees. He's not only the president of Sarofim International Co. but also the vice-chairman of Fayez Sarofim & Co, and a director of the Sarofim Group. Better yet, he's also a co-manager of BNY Mellon's mutual funds and a portfolio manager for several high-net-worth clients.
This astute fund manager sits on several boards and committees, including the Brown Foundation, Inc. and the Advisory Committee of the MD Anderson Cancer Center Board of Visitors. As for his education, Christopher B. Sarofim attended the prestigious Princeton University, where he obtained a Bachelor's degree in History in 1986. To further confirm his credibility, Mr. Sarofim previously worked in the corporate finance division of Goldman, Sachs & Co.
Now, imagine what you stand to benefit from having a mentor like Christopher Sarofim.
2. Make alternative investments.
For any business, investing is always a good idea. Taking advantage of a good investment opportunity is a surefire way to grow your wealth, and your brand's financial portfolio. More so, alternative investments are the way to go when diversifying your investment portfolio. If you're unsure where to start, YieldStreet is a good example of a trusted alternative investment platform. When you carry out your own due diligence on this investment company's background, you'll find little to no Yieldstreet complaints.
The platform offers various investment opportunities, including litigation financing, marine assets, real estate, fine art, and commercial loans. In fact, the YieldStreet prism fund is on offer to investors with a minimum investment portfolio of $5,000. You'll discover that most of their offerings are "pre-funded" and have short and medium hold-terms.
Furthermore, YieldStreet doesn't focus on a particular asset class; instead, they consider various secured investments. In early 2020, the U.S.-based alternative investment firm partnered with BlackRock on a new joint 'Prism Fund.' As a business looking for its first investment opportunity, it would definitely be worth looking into YieldStreet and BlackRock's joint venture, and going for the alternative.
3. Build an emergency savings fund.
Every business owner should have an emergency fund in case of a downturn or fluctuation in cash flow. It helps you deal with unplanned expenses and guards against high-interest debt. What's more, as the name suggests, it prepares you for emergencies and unforeseen challenges.
Building an emergency fund isn't entirely tricky as it only requires you to cut your spending, and channel what you would have spent into an emergency savings account. The idea is to have sufficient funds to cover your living and operational expenses when your regular income source is disrupted.
4. Manage both your personal and business credit.
You're likely to be familiar with personal credits. If so, business credit scores work the same way. Paying off debts on time increases your business credit score, which ultimately raises your chances of getting a loan. Many lenders use credit score models to measure how you manage your debt portfolio. They equally use past performance as an indicator of borrowing habits and a company's likelihood of honoring a debt payment agreement.
5. Stick to your budget.
A subtle way of getting ahead financially is by sticking to your budget and setting spending limits. As a business owner, you should be prudent and curtail bad spending habits. Avoid spending money on things you don't need, and never spend more cash than you have. Furthermore, when drawing up a budget, you have to take into consideration your annual income and expenditure. That'll help you decide how much to allocate for other things.
