Making the most of a small business’s limited resources is essential for sustainable growth. However, many entrepreneurs find it challenging to manage their finances efficiently. With numerous competing demands and uncertainties, deciding where to allocate their funds can take a lot of time and effort.

Nevertheless, there are several things that can help small business owners navigate through these challenges strategically—one of which is putting their money into the right things. By investing their resources wisely, small business owners like yourself can position themselves for sustained growth and success.

Let’s take a look at the things you should put money into to fuel your business’s expansion efforts and enhance competitiveness.

A Good Accountant

Hiring a good accountant can improve the financial health of a business, no matter its size. Accountants are experts in managing business finances, tax planning, and compliance, helping you navigate complex financial matters with confidence. They can also provide valuable insights into cash flow management, budgeting, and financial forecasting, enabling you to make informed decisions about resource allocation.

Additionally, accountants can assist you in identifying areas of inefficiency or overspending so that you can streamline your operations and maximize profitability. Lastly, a good accountant will ensure that your business is following tax laws and regulations, minimizing tax liabilities and avoiding costly penalties. This not only preserves financial resources, but also creates opportunities to reinvest savings into business growth initiatives.

A User-Friendly Deposit Account with High Interest

For small businesses, putting money in a user-friendly deposit account with high interest contributes to effective cash management and resource optimization. It’s essentially a safe place for funds, which reduces the risk of loss or theft associated with keeping large sums of cash on hand. The interest earned on this type of deposit account also adds to your business's bottom line, augmenting revenue streams and bolstering financial stability. Moreover, a user-friendly deposit account offers convenience and accessibility, allowing easier and more efficient financial management. 

There are a lot of user-friendly deposit accounts that are tailored to meet your small business banking needs. Maya Business, for instance, has Maya Business Deposit. This is a fully digital deposit product for Maya Business clients. This product makes money management simple, allowing users to receive sales revenues, disburse salaries and benefits to employees, as well as transfer funds to any bank or e-wallet via PESONet or InstaPay in a single account. It also boasts a 2.5% interest rate, which is the highest business deposit interest rate in the Philippines—up to 20 to 25 times more than the average bank. What’s more, it doesn’t require a minimum balance, letting you maximize your business’s finances with peace of mind.

Insurance

Whether it's to cover damage to physical assets or to protect your business against lawsuits, getting the right insurance provides a safety net that can prevent your business from falling into financial ruin. Insurance offers financial protection against various risks and liabilities so that you can offset the financial impact of an unforeseen incident (e.g., property damage, product liability, or theft). This prevents significant losses that could otherwise drain resources and jeopardize business operations.

Moreover, insurance enables more effective budgeting by spreading the cost of potential risks over regular premium payments, rather than facing unpredictable expenses in the event of a crisis. It’s ideal to get a small business insurance that covers risks associated with employees, property, motor vehicles, and clients and customers to ensure that your business is adequately covered. 

Research and Development

Investing in research and development (R&D) can foster innovation and drive long-term business success. While R&D expenditures may initially require significant financial resources, the potential returns on investment can be substantial, with successful innovations leading to increased revenue, market share, and profitability. Moreover, R&D initiatives can help you identify and address emerging trends, customer needs, and competitive threats, enabling you to adapt and thrive in dynamic market environments. Some R&D efforts you can invest in include product innovation, process improvement, customer experience enhancement, and market research.

Emergency Fund

An emergency fund is essential to mitigate financial risks, weather unforeseen challenges, and ensure business continuity during times of crisis. From economic downturns and natural disasters to unexpected expenses and disruptions, you may encounter various emergencies that can threaten the financial stability and survival of your business. By allocating some money towards an emergency fund, you can create a financial buffer that provides liquidity, flexibility, and resilience to navigate through turbulent times and emerge stronger. Furthermore, an emergency fund gives you the confidence to pursue growth opportunities and invest in strategic initiatives, allowing you to make decisions with a long-term perspective rather than being forced into short-term survival mode.

Effective financial management is essential for the success and growth of any business. However, this poses a challenge for many small business owners due to limited resources and experience. Fortunately, they can make the most of their resources by making strategic investments in key areas, such as the ones discussed in this article. Doing so won’t only help small business owners overcome challenges in their industry, but also drive innovation and achieve their vision for success.