Introduction
Are you tired of letting financial worries derail your progress? Let me show you why neglecting your finances can spell trouble and how simple steps like setting aside savings and monitoring expenses can make all the difference. Don’t let financial uncertainty hold you back – take control today! Ready to dive deeper?
There aren’t many business owners that absolutely love managing their finances (and I get that I’m the exception to the rule). This is the reason why many entrepreneurs find it challenging to effectively handle their finances and take precautions against potential risks. By this, I am referring to having sufficient savings for unexpected circumstances, such as slow business periods, illness preventing work, or holidays.
It probably won’t surprise you that many entrepreneurs manage their finances by monitoring their bank account balance. They make spending decisions based on the amount of money they have in their bank account at the time. And to be honest, it’s only natural. We’ve invested a significant amount of time and effort developing our expertise, and we love serving our clients so it’s logical to focus all of our efforts in that area. It’s where we feel comfortable and secure.
You see, for most of you, managing finances isn’t exactly a walk in the park. I mean, who wouldn’t rather focus on growing their business than getting lost in the numbers, right? But here’s the thing – neglecting your finances can spell trouble down the line, especially when those lean times hit. And trust me, they will.
The good news is that you don’t need to be a financial genius in order to reduce the financial uncertainty in your business. You can begin being responsible with your finances by following a few simple steps, ensuring that you always have some money put aside for emergencies.
Don’t spend money that isn’t yours
Picture this: you’re swiping your card left and right, making purchases here and there, without a care in the world. Sounds familiar? Well, it’s time to pump the brakes. As a business owner, it’s crucial to understand your financial responsibilities.
Start by setting aside a percentage of your income for taxes in a separate bank account. Trust me, the last thing you want is to be caught off guard by a hefty tax bill. And while we’re at it, why not stash away some cash for GST too? It’s all about being proactive.
Monitor your expenses
Ah, those sneaky expenses that seem to slip through the cracks. From software subscriptions to memberships, they all add up. But never fear, there’s a simple solution – review your expenses regularly.
Most online subscriptions and memberships are paid using a recurring direct debit method. Undoubtedly, this is an excellent method for businesses to continuously generate revenue – but hopefully not at the expense of cash-strapped entrepreneurs! What often happens is, we don’t realise we were resubscribing or we’re no longer using the product and the money continues to be deducted from our account. This can mean we’re slowly leaking money that could be better utilised elsewhere.
Take a close look at your expenses. Where is your money going? And more importantly, is it worth it? Remember, every dollar counts. So, before you hit that subscribe button, ask yourself – is this truly necessary?
Always set aside savings
Now, onto everyone’s favourite part – saving. I know, it’s not the most exciting topic, but saving a portion of your profits can be a game-changer.
Think of it as your safety net. By setting aside a percentage of your earnings, you’re preparing for the unexpected. Whether it’s a slow month or an unexpected expense, having that buffer can provide peace of mind.
The most successful entrepreneurs I work with are those that pay themselves a regular wage and religiously put aside a percentage of their profits into savings.
So, there you have it – you can start getting a grip on your finances by taking small steps, being proactive, and staying accountable.
If you’re ready to take control of your money, I’m here for you. Secure your free, no-strings-attached chat with me here.
