7 Money Rules You Should Break for Your Business

Jenna Brandon
5 min readJan 28, 2019
7 Money Rules You Should Break for Your Business

The world has become so regulated. Do you have a feeling like you are tired of rules? The world promises to give generous returns to everyone who complies.

Study well. Get a good degree. Pursue career growth. Get married and have children. The same relates to business and the money earned in that business. Don’t expect quick returns. Be reasonable while setting financial goals. Monitor your performance regularly. Get an external auditor to check your finances.

The list of rules is endless. However, the time has come to break some of them. It is better to do now than any time later. So, what are these rules?

1) Always invest a share of your profits in a new project.

It has become a mantra of business growth. Rumors circulate that companies which continually expand are much better than companies who focus on other aspects of their activity such as quality improvement or product development.

This time, you don’t have to follow the rule. Stop and think what your company needs today. Is it a new project or the retirement or health fund for your employees?

Maybe, you want to organize a small party for your employees’ children or pay benefits for their hard work? You are the decision maker. You know best how to allocate your profits to achieve the best results.

2) Get your own office or manufacturing premises instead of renting them.

This is a matter of pride for many businesses when their workers treat the office as their second home. Of course, you don’t have to worry about anything if you work in a facility that you own. However, is the investment worth the target? It used to be a widespread belief among business owners that paying rent is unreasonable. It is wasting money.

In most cases, it is buying a property that can become a real issue for a business. Just imagine how the property tax will increase the financial and taxation burden on the company. Besides, the excellent properties are not cheap. Therefore, it could be wiser to reinvest the money in a new project or leave it until better times. Who knows when the company may need extra money to survive?

3) Hire only the most trained personnel because they will save your costs.

Ideally, people should join the company, possessing all the skills and knowledge needed to fulfill their job. Many entrepreneurs imagine that the best worker is that who contributes to and improves the company the first day he or she joins it.

The reality is entirely different. Instead of looking for the most qualified workers, businesses in the 21st century should focus on training the existing and future staff.

Training is not an issue if the worker is motivated and ready to learn to become more skillful at the job he is going to do. Businesses are likely to face massive costs due to increased turnover, low employee morale, and reduced employee performance.

Qualified workers may come and go. They look for jobs that meet their ambitious expectations. The rule of thumb is getting the most dedicated people to the core of your business, providing them with opportunities to grow, improve, and thrive.

4) Never, never use credit resources to expand your business

For decades, banks and credit institutions maintained a negative stance, which discouraged individual customers and businesses from lending money from them. Some business owners would go through the dire straits of financial crises without even looking at banks. Times change, and it is time to break the rule.

Instead of suffering, spend some time to find the most convenient credit plan for your business. The chances are high that you will quickly improve your situation and pay off your debts. Credit resources are not a taboo. Just use them reasonably.

5) Always keep cash on hand

It is still smart to have some liquid money readily available to cover for possible emergencies. However, keeping piles of cash around is probably the least smart choice a business can make. As you may know, there are two types of liquidity: short term and long term. Many banks will regulate your higher-interest investments by punishing early withdrawal and making you lose on your investment.

However, there are financial instruments which can be invested in for a short period. There are options and futures which allow building the most diversified strategies.

For example, you as a business owner could invest some cash (which would otherwise lay in your drawer and lose value due to inflation, every day) into grain production and decide to buy it is an option to withdraw on a specific date (or even date range).

You as an investor will be able to make a profit and choose whether you want to sell that grain to some farm or keep it and make even more interest. Then (if your business is doing fine and you don’t need any fast cash) you can sell it more expensive, get some additional interest, and a farmer willing to buy it will even cover his transportation costs. You will never see the grain, but you will make some money (with flexible conditions) off of it.

So, the rule is this: don’t keep cash, always invest it. Research your options locally and invest in what you think will soon plummet. Diversify your investment with some risk-free bond, and you won’t lose anything.

6) Businesses’ financial history determines its credit rating so a young firm can’t usually get any investment

There is a rise in such trends as angel investment whereas rich investors look for attractive startups to invest into. These businesses never have enough history or financial transactions, or even drafted budgets to show. Such investors follow their gut — they have experience, and they won’t be disappointed if one of the businesses they have invested into goes bankrupt.

They are ready to take that risk. But they also understand that there is high chance that any of those startups will bloom into new Apple or Google. You have to make sure you find that right person who will share your business’ values and hopes.

7) If it’s not broken, then don’t fix it

There are businesses out there thinking that something needs fixing only if it’s broken and cannot function like before. And this applies not only to toasters and coffee machines but also to the employees and relationships among them. In the modern age, employers must take responsibility and ask employees not what to fix but how to improve the already well-functioning processes.

This proactive approach stimulates thinking and idea generation. As a business owner, send out a simple anonymous survey asking what you could do better or what are their raw ideas. You’d be surprised.


All in all, business is not rocket science. It’s much more complicated. But the good news is that if you do unto others as you would have others do unto you, you’ll be successful.

This rule applies to everyone: your creditors, investors, employees, customers, coworkers, co-owners, passers-by on the street, etc. There is an idea of CRM (corporate social responsibility) built into everything today: office walls, electronic devices, plastic recycling, employee remuneration, sick leave, remote work options, equal maternity and paternity rights.

This list is endless. But, if you listen to your stakeholders and improve the processes which are essential for them, you’re off to a good start. They will be more motivated and productive to invest in your business, both financially and cognitively.



Jenna Brandon

Jenna Brandon is a blogger, content creator, and digital marketer at Writology.com.