There’s a long list of responsibilities you need to juggle as a small business owner: yours and your employees’ financial circumstances and maintaining high morale of the entire work environment. To strike a healthy balance between these tasks, you need to be in tune with everyone under your management. In a 2019 survey, it was discovered that 55% of workers worry about their financial health several times weekly while at their workplace. With this in mind and considering that more than 30% of businesses fail within the first two years, you need to be well-equipped for strengthening your company’s financial status and remaining prepared for the worst.
Financial Guidance for Employees
One of the most common forms of assistance presently offered by managers is a form of financial guidance. Financial wellness programs are a new employee benefit quickly gaining popularity across industries. Offering employees a strong foundation in finance management, such programs can help to eliminate uncertainty from your business by improving your staff’s financial literacy. The confidence they will gain from the guidance they receive will positively influence the work environment, serving not only morale but improving employee retention as well.
Although it seems that the benefits of actively improving the financial wellness of your business are primarily advantageous to employees, it can be a positive change for you as a business owner as well. Following the tips below will guide you in the path of financial stability and growth for your business.
Closely Monitor the Finances of Your Business
Although this may seem a bit too on-the-nose, this is a necessary reminder for many business owners. There are so many components to running a business – too much for one person to handle at times. It can become easy under all the pressure to forget to pay close attention to the basics, even including your own financial health. When you are feeling overwhelmed in this regard, don’t let it snowball.
Seek out assistance with monitoring your personal and business-related financial activity either in the form of an app or a financial advisor.
Do Not Sell Yourself Short in Your Salary
Compassion is a strong leadership trait and something that you may feel toward your employees when deciding fixed-income rates for the staff in your care. It is a commendable gesture to give your employees the rates they deserve instead of cutting their income for your greed. Still, there must be a balance. Keep your personal budget in mind when managing all financial aspects of your business – after all, you are doing this to earn a living.
This is especially difficult for entrepreneurs that are just starting out, who are often unsurprised by the notion of working for free for networking and exposure. Still, there comes a point at which you need to factor in your lifestyle and responsibilities into your income. Consider if you have a rent payment or mortgage, outstanding debt, or other expenses, and keep those factors in mind when establishing your pay rate.
Applying these methods to your business’ financial plan is your best shot at securing a stable future for your business.