How To Be an Entrepreneur Without Breaking The Bank
Four ways to prepare your personal finances for entrepreneurship.
If you’ve ever considered becoming an entrepreneur — or even if you’ve been doing it for a while, you know that becoming profitable is usually the hardest part. Are you making the right financial decisions? Can you afford to hire more employees? Is it time to start cutting back? Even though these are all important questions, one of the most important ones that entrepreneurs should be asking is “how is this business affecting my personal finances?”
Here are four tips on how to build a successful business and also minding your bank account.
In today’s world it’s easy to get distracted with the newest, latest technologies that you think could help move your business forward. In the early stages, however, it’s important to stay focused and understand that a new computer, a fancy office and lavish client dinners are not what you need to be spending your own investment on. Instead, spend your time, money and energy perfecting your product or service, building awareness and acquiring new clients.
Organization is key
When starting your own business and becoming your own boss, you’re in charge of managing your time, schedule and team. Your company’s finances shouldn’t be the exception.
As simple as it may sound, start a spreadsheet with all your financial information, initial investment from yourself and others, monthly expenses and business projections. If you know where you stand, you’ll know what to expect and will avoid being devastated when you find out your personal account has been drained with no income.
Don’t be afraid to ask for help
A big struggle for entrepreneurs is knowing when to admit that we need help. Unfortunately, failing to do so will only result in exhaustion, frustration and possibly making the wrong decisions for yourself and your business.
In order to truly succeed financially, don’t be afraid to reach out to a financial professional who can help you evaluate where your business stands and whether your projections and expenses are realistic. Surrounding yourself with experts who have your best interest at heart will help you feel supported and will take a huge burden off your shoulders.
Set realistic goals
There’s nothing wrong with being ambitious and wanting to see your business grow. However, you can’t let aggressive goals and objectives get in the way of being realistic. A good rule of thumb is to avoid making financial decisions based on your hopes, but instead making decisions based on hard data and educated projections that consider revenue, investments and cash flow.
If you’ve been reading books and articles on entrepreneurship you probably know that there’s no “one size fits all” when it comes to managing your business, employees and finances. Every business model, product, leader and team have different secrets for success. There are only three rules that every entrepreneur should know: follow your passion, believe in yourself and love what you do.