Some entrepreneurs have problems growing their businesses because they don’t have these simple skills. If you have been struggling to grow your business in vain, it is possible that the following things you didn’t get right.
Set a Budget
Managing finances in any business proves to be very hectic. To overcome this challenge, come up with a well-defined budget. It will help keep you on track. Budgets become particularly important when faced with emergency issues that need financial resolutions. If your budget caters for contingencies, it can help solve unforeseen problems like repairs, unexpected costs, upgrades, and other minor problems.
Lower Your Debt To Income Ratio
A debt-to-income ratio measures your ability to pay the amount of money borrowed each month. It compares your debt to your overall income. This ratio is calculated by dividing your total frequent monthly debt by gross monthly income. For instance, if your monthly recurring debt is $3,000 and your gross monthly income is $9,000, your debt-to-income ratio would be 33.33% i.e. $3,000 divided by $9,000, then converted into a percentage. The following are the best possible ways of reducing your debt-to-income ratio.
- Reduce your monthly recurring debt
- Grow your gross monthly income
Although it is not always easy to reduce monthly debts, you can try it out by differentiating between needs and wants. Purchase what is much necessary to the business, and leave alone what is not much beneficial. For example, if you are in need of space, it is much easier to rent a room at a strategic place in town than constructing your own office altogether. Instead of employing full-time workers, consider hiring them, as it will help cut short your expenses.
About growing your gross income, you can venture into other additional income generating activities to supplement your main job. For example, instead of relying on your business alone, you can as well become a taxi driver.
Better Your Credit Score
Your credit score is what determines your ability to get loans from financing institutions. No one with a bad credit score is eligible for loans, and if in any case he gets, he will be subjected to higher interest rates. This becomes a hindrance to remarkable business growth. Your business can’t prosper in isolation. You need support from people and financial institutions. You will be doom if you are unable to access any loan. Require financial help to secure mortgages for offices, or money to finance your equipment. The following are the best ways of improving your credit score:
- Paying your bills on time
- Lowering your debts
- Checking your credit report
Keep Sufficient Money Aside For Emergencies
You never know what is about to befall your business. Risks and uncertainties are a great danger to any business. Remember the world isn’t ideal, and anything weird is imminent. An emergency fund allows you to settle emergency problems and keeps your business on track. Expert businessmen always suggest that you set aside at least a three months worth of expense into your emergency fund.
Best Credit SG Pte Ltd
Best Credit is also formerly called Cing Dien Credit. We have re-branded ourselves and is known by our clients as Best Credit SG Pte Ltd. Our doors open for operation since 1985. We have been a licensed money lender for more than 35 years! Throughout the years, we have help many citizens of Singapore, PR, Foreigners working in Singapore through their times of needs. In addition, our loans are also provided to businesses to help them tide over their tough times. With our fast cash loans at low interest rates, this has allow many people to solve their problems quickly.
For any reason that you need extra cash, let us know. As one of the best money lender in Singapore, we strive to help everyone who needs financial help.
Our office is located at Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372. Feel free to drop by any time during our operating hours for a free loan consultation. We are open everyday including Sundays! On weekdays we are open from 11AM – 8PM. While on the weekends, we are open from 12PM – 5PM. Let our loan consultants help you come up with the best possible solution.
If you like, you can also call us at +65 6899 6188 for any questions that you may have 🙂