The time-tested strategy of setting up a good financial safety net alongside consistent business reinvestment may not necessarily strike newbie entrepreneurs as exciting, but it’s a potentially winning move that can have long-term positive implications for a business. After all, aggressive, grow-at-all-costs strategies may temporarily multiply your business's capabilities but leave it at risk of unexpected expenses, sudden drops in revenue, and unfavorable market movements.
Having extra funds also comes with other important benefits. For one thing, it makes it far easier to deal with everyday fluctuations in cash flow. It also communicates financial responsibility to potential investors, opening future avenues for growth. Critically, having cash on hand makes it possible to seize fleeting market opportunities without having to scramble for funding.
As compelling as these benefits are, building a secure cash buffer does take a lot of patience and savvy. Try these tried and true strategies to reach financial security sooner:
1. Grow Your Funds Faster with Better Online Business Banking
Business bank accounts give you a secure place to hold your savings. However, not all banks have modern small businesses in mind. Selecting the right financial institution can make a difference, opening access to convenient business banking online as well as depositor-friendly interest rates.
If you’re interested in building a secure financial safety net, Maya Business has you covered. Maya Business users are automatically entitled to the industry-disrupting Maya Business Deposit savings product, one of the best business banking deals out there. Its 2.5% per annum interest rate allows you to grow your safety net 20-25x faster than the deposit products of competing banks, getting you to your desired financial goals sooner.
2. Build a Realistic Strategy
Having a Maya Business Deposit account is a good start. However, growing your funds faster will require an actionable plan and steady commitment.
Define how much cash you need to build a worthwhile emergency fund. As a starting point, aim for three to six months’ worth of operating expenses. If your business is in a highly seasonal industry like tourism or agriculture, you may want to commit to an equivalent of a year’s worth of overhead.
Once you’ve committed to a figure, find room in your budget to accommodate the savings goal. If you have business partners and investors, make sure to get their inputs as well, since regular saving contributions may impact them in the short term.
3. Readjust Your Budget
The money you put in your business savings account will positively affect your organization’s resilience but it will also impact the cash going into other parts of your operation. Making your contributions a formal part of your budget ensures visibility, giving you a better idea of your business’s overall financial state. Be sure to review and adjust it as necessary as your financial situation evolves.
4. Streamline Your Contributions and Other Payments
Regular budget line items like savings contributions should be automated to save time and avoid missing payments. Set up whichever bank account you use to automatically transfer your monthly contributions to your high-performance Maya Business Deposit.
You can also use your Maya Business account to automate payments to suppliers, potentially unlocking early payment discounts. Just use Maya Disbursements to schedule any payment from your Maya Business Deposit account.
5. Open Up New Revenue Streams
Saving is much easier if you have more income going into the business. Offering new products and services, entering new markets, or creating passive income sources may help increase and diversify your income, making your savings commitments easier to meet.
6. Keep Operational Costs Low
Review your expenses at least once a year to look for ways to reduce overhead without compromising quality. Doing this successfully can effectively increase your cash flow for practically nothing. Some things you can try include negotiating better terms with suppliers and finding more efficient ways to perform everyday processes.
Build a Secure Emergency Fund Fast with Maya Business Deposit
If you want to grow your business’s emergency fund, Maya Business is the clear choice. Over the past several years, Maya Business Deposit has emerged as the preferred business banking solution for Philippine-based businesses of all sizes. Sign up for Maya Business to enjoy faster fund growth with Maya Business Deposit.
Signing up for Maya Business automatically grants access to a high-performance Maya Business Deposit account for settlements and more. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 yearly for every PHP 1 million deposit. Your Maya Business Deposit account also unlocks free InstaPay and PESONet transfers, granting you savings each time you send cash to partners and suppliers.
Lastly, becoming a Maya Business user instantly qualifies you for a Maya Flexi Loan offer valued up to PHP 2 million within 3 months. Use your loan to grow your business or navigate temporary cash shortfalls. Use Maya as your primary processor for all wallet and card payments and keep using Maya solutions to improve your next loan offer.
Complete your Maya Business application today and build a secure emergency fund with Maya Business Deposit.
