The pandemic ravaged the US economy last year. The US economy shrank by a staggering 3.5%, the highest ever since the 1940s. It affected the livelihood of 20 million Americans who lost their jobs, and it also affected thousands of business owners whose businesses were forced to close. It is truly a dire time for many Americans and a struggling time for entrepreneurs and business owners.
Suffice to say, business is tough during the pandemic. Every business owner and entrepreneur will need every bit they can get to help their individual businesses survive from this disaster. Many are salvaging whatever they can from this mess. In contrast, many more are finding ways to cover the holes of their sinking ship. But some are finding growth and success during these desperate times.
However, they have gambled to reach this growth. The truth is, there are some assets, currently not in your business, that can help your business grow. But this requires a lot of dedication from you because these assets are your personal assets. Here are some personal assets you have that can inject the needed funds for your business to grow this year.
The most obvious personal asset you have that can be used in your business is cash. This is personal cash from your own wallet and your bank. It’s risky to use personal cash for business transactions since it’s an expense that you can’t personally afford, especially when your company is leaking thousands of dollars every month. However, many entrepreneurs take this gamble in hopes of making it to a time when their revenues are better.
You might have heard some business owners gambling their own mortgage for the sake of their business, and this is true because people’s mortgages are one of the best personal assets they can use for their business. However, you shouldn’t make the same mistake that other business owners do when putting their own mortgage in the line. Here are some ways you can use your mortgage to grow your business.
Use it Proactively
Once you’ve paid your mortgage, it’s time to get another one for the sake of your business, even if you’re not in serious financial debt. You might think that it’s a risk right now since a mortgage costs thousands of dollars and several years to pay, but if you consider the economy right now, mortgage rates have reached record lows. This might not translate to thousands of Americans jumping in and buying a home, but it does translate to business owners refinancing their mortgage. It’s a gamble that you have a good chance of winning.
Create a Feasible Deadline for Payments
However, it’s important to remember that you can’t be paying for your mortgage for the rest of your life or the rest of your business’ life. When refinancing your mortgage, you’ll have to make a feasible deadline for your payments. Look into your business’ expenses and costs and try to calculate where you’re going to be in the future. Ensure that you can still pay your mortgage up to that point or maybe even more before refinancing it. This will give you a clear goal for yourself so that you know if your deadlines are possible or not.
Personal insurance can play a big part in your business once you have integrated it into your business. You can do this by making it part of umbrella insurance.
Umbrella insurance is an insurance policy on top of your other insurance policies. This ensures that you wouldn’t hit rock bottom if a disaster hits you and your business. You can put all kinds of insurance into your commercial umbrella insurance policy. Your manufactured home insurance can be a part of it, even your car insurance! It’s as flexible as you want it to be, given that you find the right insurance company for the job. All of these can help contribute to the umbrella you have for your business, so if any accident occurs, you know that your business will be safe.
Any assets you might have right now can play a big role in growing your business, as long as you use them proactively. However, if your business is currently in the red, and you’re planning to use your mortgage to keep it afloat, then you are already making a big mistake. This is an expense you can afford because you are placing your own business in peril and yourself and your family as well. So think twice before using your assets for your business because you never know what kind of consequences it will have in the future. It’s better to use them when things are good because you know that you can pay for them in the end.