As a small business owner, few things are as important to you as the success of your business and saving money for the future. Creating a sustainable financial plan is a great way to ensure that you always have the capital needed to encourage company growth and handle any problems that may come your way.
With that in mind, it can be extremely beneficial to think about saving money on a day-to-day basis. Stashing some extra cash on the side can really add up over time, and it will be a good way to promote a healthy business and set a strong example for your employees. Based on the results from a recent Stanford Graduate School of Business study, feeling powerful will directly improve a person's savings.
Money and power have close relationship
Money and power go hand in hand, according to the Stanford researchers. Those who feel more powerful want to hang onto that control, and saving money is often viewed as the most direct way to do that. For the study, two experiments were performed: one with 140 Dutch university students and another with 26 Stanford students.
"Most of the characteristics that make you more or less likely to save – things like education, upbringing, and income level – are not very changeable," said Anne-Kathrin Klesse, an assistant professor of marketing at Tiburg University in the Netherlands. "We show that very subtle shifts in feelings of power can have quite an impact on saving. This is very important because it's something that's easy to change."
Given the study results, it may be helpful for small business owners to instill a sense of power in their employees, to better help them save. Or, they can channel their own emotions to improve personal finances.
Aim to be debt-free
In addition to a feeling of power, another great way you can save money for yourself and your small business is to become debt-free. According to Forbes, a new approach may be exactly what you need to cut down on credit card bills, outstanding loans and other expenses.
Two options – debt settlement and debt consolidation – are useful methods for small business owners. Forbes noted that the latter will allow you to combine your payments into one, making the process simpler and reducing your annual interest rates and other fees. Either way, picking a course of action to avoid debt can help you and your small business thrive.