Ways to protect income for your small business

FILED UNDER: FINANCIAL PLANNER AUSTRALIA, FINANCIAL ADVISER, SMALL BUSINESS, INSURANCE, INCOME PROTECTION

As a business owner, it is in your best interests to keep your income protected. But with all the uncertainties that come with running a business, protecting your income can be a bit challenging.


Don’t worry, though - we’re here to help! Here are 5 things that you should consider if you want better protection for your business income:


  1.    Maintain good customer relationships

Your customer base is your biggest source of income, so it’s important to maintain good relationships with them. Keeping your current customers engaged with your products and services ensures that you have a continuous cash flow for your business.


Don’t just settle for what you are currently providing them; try improving your products and services or give them something new to try. Roll out promos and discounts to keep them engaged. The idea is to reward them for being loyal, so that they will remain loyal.


  1.    Get business interruption insurance

Most business owners are aware of the importance of getting insurance for their facilities and equipment, but what most of them do not know is that their income can also be insured by availing business interruption insurance.


Business interruption insurance protects your business from risks in the event that your operations get interrupted, which can be due to many factors. This provides a steady cash flow for your business until it gets back on its feet.


  1.    Create a contingency fund

Creating a contingency fund is another way of protecting your income from risks associated with your business operations, allowing you to react quickly when dealing with unforeseen circumstances. A contingency fund provides a cushion for your business and minimises the damages and losses your business might incur if something unexpected happens.


  1.    Beef up your data security

A large part of small business process typically take place online, which is why securing your data is an absolute must if you want to protect your income. Without enough data security, it’s easier for all of your sensitive business information, including your banking information, to become compromised. From there, anything related to your data can happen: you can lose money to hacking, confidential information might get leaked, and your database might get infected, all of which can impact your income negatively.


  1.    Hire financial experts

You might be thinking that hiring the services of a financial advisory firm is not a good idea, given your limited budget. You might even be thinking that doing so would take away a chunk of your monthly income. So why would you do it?


While it’s true that they cost money, financial advisors can not only help you keep your finances in order, they can also provide advice on how you can increase your income, taking your current position into consideration to offer solutions that will suit your business.


Additionally, you’re also benefiting from their expertise at a fraction of the cost, as opposed to hiring an in-house accountant. You may not realise it, but doing this is actually beneficial for your business.