You probably read this headline and thought, “An entrepreneur does everything except save.” Why? Well, because there are actually many reasons why it is difficult for an entrepreneur to apply the dogma of saving. A few that may resonate with you are:
An “entrepreneur” is someone who “undertakes”, coming from the Latin “prendere” which means “to take”, a verb that was related to adventurers and travellers of the past. What traveller has saved money on their adventure? Few or none, since the journey, the adventure of the moment and reaching the destination are the most important things.
If you are an entrepreneur, you may also have a lower risk aversion than your colleagues, friends and family. That same characteristic that led you to start your own business is probably what hinders your path to responsible savings, since... "I philippines business mailing list don't think it will happen to me, and if it does, I'll manage" is your motto.
Entrepreneurs generally have variable incomes, and basic items such as their own salary are pushed out until they reach a certain sales point that at first seems far from being met. That said, it's obvious why it's difficult to save... right?
Keeping these and other considerations in mind, we leave you with some tips so that you don't have a "bad time" when something unexpected comes knocking on your door:
PPM : If you are registered, the PPM is an almost obligatory form of savings, which allows you to save an amount so as not to “get hit” in April of each year by our friends at the SII. Pro: The annual tax payment will not give you a mini heart attack, and you can even recover taxes. Con: It has no interest and you have “immobilized” capital.
Deposit a small % of your income every month into a monthly renewable term deposit . Pro: It has interest and you can withdraw it every month if you need to. Con: Interest is usually very low on this type of savings instrument.
Invest in mutual funds. Just like a term deposit, you can take this out at your bank in person or even online. Pro: It gives high interest. Con: Depending on the fund you choose, you may run the risk of “losing” money. Be careful, if you don’t take risks, you won’t cross the river!
Invest in crowdfunding platforms: Platforms like cumplo.cl connect people who want to save with micro and small businesses like you that need capital to operate. Pro: Rates are generally higher than a term deposit. Con: You may just end up with the last-minute one in the group that leaves you waiting longer than you had planned.
Save on your costs: Sometimes keeping a clear inventory control, reviewing your procurement process or negotiating with your suppliers can be a source of great savings for your company. Pro: You don't have to invest elsewhere. Con: In any case, you invest something, which will be the time and effort in carrying out these processes to seek efficiency.
BONUS TRACK: Become a lender: You can always start your own local bank by lending to your entrepreneurial friends at usurious rates. Pro: Is there any pro that isn't immoral? Con: Going to jail
Although we know that it is not easy to save, we invite you to think of more options to achieve those savings in your company, either to enjoy them on your vacation or to make your business reach the top sooner than expected... Remember: The 18th is coming and... you don't have a bonus!... What will you do to change this?