This is one of the most sensitive areas of a business, and the part where most entrepreneurs tend to make the greatest mistakes. Do not let your business suffer due to poor money management. Keep the following tips in mind and give your venture a bright future.
This is one of the most sensitive areas of a business, and the part where most entrepreneurs tend to make the greatest mistakes. Do not let your business suffer due to poor money management. Keep the following tips in mind and give your venture a bright future.
Do not mix apples and oranges: This is one of the top mistakes that entrepreneurs make especially sole-proprietors. Learn to separate your personal finance from the business finance as this could help you track your expenses and keep you in check. Keep separate accounts and put yourself on the payroll. Remember you are also an employee of that business and so therefore should be paid a salary.
A good place to start would be investing in Robert Kiyosaki's Cashflow Quadrant.
Cut down on unnecessary costs: Not everything is necessary to your business especially when you are just starting out. With time the business will grow and can afford to invest in certain things. Every business endures 2 types of costs – fixed and variable. While fixed costs have to be borne irrespective of whether your business is making money or not, there is scope for savings in variable costs. Instead of always expending call airtime, you can conduct free online calls. Also you can partake in video conferences instead of travelling lots of distances. You could also try bartering your services with other professionals and cut costs.
Invest in a professional accountant: Even if it is just on a part-time basis, it pays to get the services of a professional who can not only do the books but also offer you financial advisory. Remember do not be penny wise pound foolish when it comes to your business, everyone needs help, especially a budding entrepreneur like yourself.
Get financially educated: Yes! sometimes after all is said and done, you need to educate yourself. A good place to start would be investing in Robert Kiyosaki's Cashflow Quadrant. It sure does make for an interesting read with mind blowing tips on how to become the ultimate Business Owner/Investor. Also look for basic accounting and book keeping books to read while you are at it.
Author: Chinwe Azikiwe
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