3 Financial strategies I swear by in business
Finding money at this time of year can be really difficult…But you know what makes it more difficult? 👇
Not understanding your business finances!
How much you’re earning
How much you can afford to take out of the business
When the next bill needs to be paid
Now if that’s you… ZERO judgement! In the early days of my business I was exactly the same. I didn't pay myself a wage. I took money out when I needed to. It all seemed to work fine. Until it didn’t.
That enthusiasm that you can work until 11pm and then get up early before the kids and keep working the next morning → It doesn't last forever. Eventually, around that 3 year mark in business, you’ll hit a transition period where the enthusiasm is wearing off a little bit and unless your business is financially rewarding you for all of the effort you put in—you’ll start to resent it. (Trust me on this one.)
Getting clearer on what’s going on with the finances in your business doesn’t have to be boring or involve complicated spreadsheets, I promise. But it DOES have to happen if you want to continue enjoying this business ownership life!
Wondering where to start? Here’s 3 financial strategies I swear by
1. Embrace Financial Fridays
Start with just 15 minutes every Friday to review your finances. This isn't about diving deep into complex accounting – it's about simple awareness. Check your bank statements, identify any unfamiliar charges (like that sneaky Amazon Prime subscription you forgot about), and get a sense of where your money is going. This small habit can lead to BIG insights and prevent financial surprises down the road.
2. Build a Supportive Financial Team
It's okay to admit that finance might not be your forte. Surround yourself with experts who can manage this aspect of your business. This includes finding an accountant or financial advisor who understands your business and can guide you without making you feel overwhelmed or inadequate. Remember, it's about finding someone who can walk this journey with you, explain things in simple terms, and help you feel confident about your business finances.
3. Pay Yourself Consistently
Even if it's a small amount, regular payments to yourself are crucial. This practice is not just about the money; it's about acknowledging your hard work and valuing your contribution to the business. Discuss with your accountant the best way to do this, considering tax implications and your overall financial situation. This step is vital for your financial wellbeing and can be incredibly motivating!
If you're feeling overwhelmed by the thought of tackling your finances, remember, you're not alone. That used to be me! You can listen to my financial journey in business RIGHT HERE.
If you need more guidance or support, don't hesitate to reach out. I’d love to help you.