There are money tips that entrepreneurs should be cognizant of. My husband Ken and I had always dreamed of building a lucrative business; becoming our own boss. We have experienced highs and lows in our business finances over the past 18 years. Ken is a decorated, retired Warrant Officer of the USN and I am a retired business professional. We still have the same drive, passion and determination, to continue growing and investing in our business, as the day that we decided to take the plunge to get started. However, early on, experience was the best teacher for us when it came to income management as entrepreneurs. We did not have the knowledge or understanding of what managing our finances should look like as business owners. Although we operate a very successful business now and another one that is growing, this was not always the case. There are money tips that entrepreneurs should know before and after starting a business.
- Keep your day job – Firing your boss should not be the first thing that you should do. Make sure that there is a positive income flow of at least six months to one year or more consistently before you hand your boss a pink slip. It is okay to build your business and keep your full-time job; the sacrifice will pay off. Stay the course; remember that your obligations will still have to be met.
- Avoid spending more money than you earn – One of the most common things that entrepreneurs do is spend more money than they earn. Make sure that you have your personal spending plan and a business plan in place prior to jumping in with both feet. A business start-up without a plan could cause you to reach for the credit cards and/or apply for loans. Avoid living like the Joneses! Once your business is profitable, there will be time to enjoy the great vacations, buying nice cars, expensive clothes and homes.
- Pay estimated taxes – Avoid owing lump sums of money to the IRS at the end of the tax season (consult your tax preparer). There are two people who an entrepreneur should become best friends with; an accountant that is proficient with their craft and an attorney to help you to protect your business investment from frivolous law suits. Usually when you start a business that is commissioned based, most of your money should be invested back into your business. Now is not the time to splurge on spending spree’s, for new homes, cars or retire anyone. Once you have built a solid business, there will be time for enjoying the harvest.
- Invest in training and personal development – These are areas that should be non-negotiable. The best possible thing that an entrepreneur can do is invest in learning more about their product, client base/demographic and competition. Investing in personal development is essential to the success of your business.
- Give of yourself – Teaching others how to become successful once you are in a position to point them in the right direction, is the greatest investment that you can make.
“You can have everything you want, if you will just help other people to get what they want.” ~Zig Ziglar~
These are essential money tips that will take your finances to the “Next Level” should you decided to implement them into your mode of operation.
As award-winning, Millionaire Club Member entrepreneurs that have been instrumental in changing the lives of hundreds of thousands of people on a global level, between our two businesses; these are some of the principles that have been proven to be effective for our businesses. Therefore, we still use them while governing our personal and business finances. Continue with personal development, minding “your business”, helping others get what they want and all of your dreams and desires will becoming a reality. Remember, to invest in your business and in personal development.
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