MONEY, MONEY, MONEY
Let’s Talk Money and Entrepreneur’s
Let’s talk money. This is a topic that can make even the most seasoned business person squirm – which can be especially true when it comes to the entrepreneurial life. Understandably, entrepreneurs worry about how much money is sitting in their company’s bank account. After all, they’ve got to pay employees, cover the bills and make sure the company stays alive while trying to continue growth and perhaps even take home a paycheque. Balancing personal finances can be tough for entrepreneurs as well.
The stress is real
To help current and future entrepreneurs navigate their personal finances when the going gets tough (and even when it gets easier), here are some money tips to ease the stress:
- It’s all about being thrifty
Most entrepreneurs are accustomed to relying on little outside capital to fund the business. An entrepreneur also can apply this mindset to personal finances. Learn how to live frugally, spend more time outdoors with friends or cooking meals at home and less time at bars and restaurants. Don’t buy things you don’t need and get creative with sourcing the things that you do require.
- Be cautious with credit cards.
In some cases, an entrepreneur can rack up debt on a personal credit card to help support the business venture or cover everyday living expenses. However, an entrepreneur should not let personal credit card debt spiral out of control. Keep a realistic budget near-by to remind yourself of the financial situation and check in often.
- Stash money away for a rainy day
Set up regular automated transfers of money to a savings account dedicated to a long-term goal or even to build a nest-egg. This will bring peace of mind and help alleviate stress, knowing that you’re paying yourself as well.
- Consider your own salary
It’s tough but consider your starting salary carefully. Yes, you work hard and you need to survive but if you want to grow your business, you may have to put in time before a big paycheque. Also, worth considering? Life insurance and even small business life insurance. Reach out to your insurance company to discuss your needs.
- Don’t run out of cash.
An entrepreneur can scrape by on savings or hold down a second job to earn extra money, but if the company has burned through its cash, it’s game over. Ensure you have a business plan, financial forecast, and budget that you evaluate frequently. This should help you keep a handle on things as your company hits targets and grows.
Here’s the bottom line: Being an entrepreneur isn’t easy, but if you make sacrifices now – the end game can pay off in spades!
If you liked this blog, you might like to read Getting the Most Out of Networking.
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