The decision to withdraw funds from AFP and CTS is an important one and requires careful planning to ensure that you use your money efficiently and safely. Below, we provide you with some pieces of advice and recommendations to manage these funds optimally in order to invest them in your venture.
What to do with the AFP fund withdrawal to boost my business?
If you have withdrawn funds from your AFP and don’t know what to do with them, here are some recommendations to maximize the use of your money and focus it on your business:
Invest in automation
Improve operational efficiency with advanced tools, such as sales, customer or inventory management software, in order to streamline the internal processes and increase your company’s productivity.
Implementing sales management software allows you to automate and centralize the sales process, from potential customer lead tracking to invoicing and closing sales. This not only saves time, but also minimizes errors and provides clearer insight for a more informed and strategic decision-making.
Scale your business or venture
Invest in increasing your production capacity or expanding your product offering in order to boost the growth and competitiveness of your business. By improving your operational capabilities you can meet increased market demand and offer a wider variety of products to your customers.
For example, consider purchasing new machinery that not only optimizes your production processes, but also increases efficiency and reduces operating costs in the long run. You can also expand your product offering by purchasing additional supplies that allow you to diversify your product line.
Invest in education
Improve your skills or acquire new ones to improve the management of your business and, consequently, your future income. Consider allocating a portion of your withdrawal to additional courses, certifications, or studies that will help you grow professionally.
Transform your CTS fund withdrawal into capital for your venture
The Severance Compensation (CTS) is a fund that serves as economic support in the event of termination of work. If you have decided to withdraw your CTS, here you have three tips on how to use that money wisely to boost your business:
Investment to reduce business debt
If your business has debts with high interest rates, consider using your CTS to pay them off in full or in part. Reducing or eliminating these debts can improve the financial health of your business, freeing you from high payments and allowing you to invest in more productive areas.
Saving for working capital with a good interest rate
Another option is to save your CTS fund in savings accounts or fixed-term deposits that offer good interest rates. Currently, some financial institutions offer up to 7% interest and are backed by the Deposit Insurance Fund, which provides security for your money.
Marketing and advertising
Allocate a part of your CTS fund to improving your marketing and advertising strategy. This can include social media campaigns, developing quality content, SEO optimization for your website, or even hiring digital marketing professionals. Effective marketing can increase the visibility of your business, attract new customers, and strengthen the loyalty of existing ones, thus boosting your sales and growth.
Consult with a financial advisor
Making important financial decisions, such as the withdrawal of your AFP and the CTS funds, can be complex. Consider consulting with a financial advisor who can provide you with professional guidance and help you make the best decisions based on your personal situation and goals.
Use these pieces of advice and recommendations to manage your funds efficiently and safely, thus ensuring a more stable and prosperous financial future for your business.
Discover more advice for making better use of your money in our latest educational series “Finance for Entrepreneurs”. This initiative seeks to provide entrepreneurs with practical tools and fundamental knowledge in the financial ambit to boost the success of their businesses.
