3 Financial Tips for an Entrepreneur Starting Their Own Business
Posted by Ocean Wealth
Starting a new business should be exciting. Your creative juices are flowing at an all-time high as you embark on a journey that finally allows you to call all the shots. You’re the boss now. No more reporting to supervisors and managers who don’t see the extent of your entrepreneurial vision — this is all you.
In a perfect world, you launch a business, and it becomes an immediate hit. People love the product or service you offer, and you’re always in demand. Even if that happens to be the case, staying financially prepared should always be at the forefront of every decision an entrepreneur makes. Without that mentality, your surefire startup can turn into a cautionary tale in no time.
Of course, some things are unavoidable. No textbook will guide you through every single financial hiccup that comes your way as an entrepreneur. But there are ongoing measures you can take to minimize any long-term financial issues. Follow these three tips, and you’ll be well on your way to becoming a successful entrepreneur and business owner.
Establish a Budget
Despite what we’d love to believe, money doesn’t grow on trees — and neither does your budget. If you’re a business that’s starting out, you need to map out a detailed budget and stick to it. Sunds tedious, we know, but it’s a lifesaver. If you don’t take the time to go through all your expenses and spending beforehand, you’ll be in a constant scramble for cash.
Your budget needs to include everything. If you’re a retail store, you need to know how much money you're paying in rent and down to how much you’ll spend on paper towels in the washroom. The more detailed, the better. The idea is that you want to know where every single dollar is going at all times so you’re not wasting unnecessary amounts of money.
If you’re feeling particularly confident in your budgeting skills, build two of them. Use one as your primary business budget and have a secondary personal budget to help you out when financial waters get a little choppy. Saving money for a rainy day is something any successful entrepreneur will tell you immediately.
Stick to Your Business Plan
This is a particularly common scenario in the startup world. An entrepreneur opens their business but quickly starts to deviate from their original plan. Instead of focusing on customer acquisition and how to increase cash flow, they’re buying expensive TVs and video game systems for an office that they already have a hard time affording.
There’s nothing wrong with throwing those perks in the mix, per se. There is, however, if you’re doing it at the cost of your business. Before you know it, you might be spending more on pizza and burgers for your team and forgetting about the people who pay your bills — customers. Make sure you always remain focused on the customer and follow your original vision.
Hire a Financial Advisor
Unless you’re starting a new business in the financial sector, chances are your favourite pastime isn’t digging through finances. You might not even have the experience to do so. There’s absolutely nothing wrong with that. You’re the entrepreneur and visionary behind your business operation — not necessarily the financial spearhead.
In this case, it may be useful to hire a financial advisor. These are professionals who have experience dealing with freshly launched businesses looking to get off the ground. It's true that you must pay these individuals for their services, but the amount of money you'll likely end up saving with a financial advisor on your side can be staggering.
Are you an entrepreneur looking to get some financial advice for your new business? Contact us today, and we’ll set you up with one of our seasoned financial advisors who can help navigate all the financial aspects of your business.