Entrepreneurs: Managing a Business- And Your Money

Succeeding as an entrepreneur requires you to do two difficult things at once.

First, you have to manage and grow your business, and that includes creating a great product or service that solves a problem for your customers. You have to deliver a quality product or service on time, market your services, bill your clients, and manage people. These tasks are time consuming, and you may find it difficult to fit in other work.

But there’s a second job.

To succeed as an entrepreneur, you have to develop the skill of managing money. Savvy business owners create an annual budget and plan for company growth, and they also focus on customer billings and collecting money in a timely manner.

A great business book I highly recommend. Click below:

To succeed you have to perform both jobs. Here’s how.

Not Just About You

There are no guarantees as an entrepreneur.

A competitor might draw business away from your firm by offering a cheaper alternative or a higher level of service. You may invest money in a marketing approach that doesn’t work, or lose money on a product that isn’t priced correctly.

Get free sample chapters from my book: Not Another Personal Finance Book.

You make lots of decisions, and they carry risk.

Consequently, entrepreneurs develop a more strategic relationship with money than their workers. They need to plan not only for their own safety but also for the growth of the company and the retention of their staff. Money is the constant unknown in the equation, and it requires a number of different approaches.

Where a typical employee creates a personal saving plan to prepare for a future vacation, the entrepreneur runs multiple financial plans at the same time and for different times in the future. In the business world, from the moment you’ve launched a company, you need to create a long-term relationship with money that focuses on your personal wealth and the growth of your business.

They think ahead

 

Nobody stays at the head of a company forever.

Every owner leaves the business eventually, so it’s important to think of your wealth once you’ve retired.

Contrary to day-to-day finance advisors who specialize in investment and business returns, you will need an expert in business retirement and related financial know-how such as Durham Loyal to evaluate your position. Admittedly, there is no need for new entrepreneurs to plan their retirement already right away.

ON the other hand, if you’re considering stepping down in the next few years, you should discuss your strategy with trusted professionals. In addition to a financial advisor for your assets, you’ll need to think of potential successors for your business.

What About Risk?

Today’s mistake can come back to bite you where it hurts tomorrow.

Consequently, entrepreneurs should also surround themselves with specialists they can trust to avoid costly errors in day-to-day activities. As a business owner, you are required to pay taxes, for yourself and your business. To be on the safe side, you can use dedicated software tools that ensure you file your tax returns appropriately as an individual and as a company.

Failure to do so can put your business at risk, and the fines can be hefty when it comes to taxes!

Why You Should Plan

It’s easy to forget that entrepreneurs are individuals whose wealth exists outside of the business. While growth strategies tend to be focused on increasing the company’s revenues, many business owners are too overwhelmed to consider their own wealth plan.

When you start your business, sit down with a personal finance advisor to discuss how your individual assets can be best used.

You Can Do Both

 

Business owners have a two-track mind, and one half should be focused on the business affairs, and the other half needs to embrace their individual wealth. The duality can be challenging to manage. But failure to do so can affect both your business and yourself.

You can do both!

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0