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Have you been around a first time parent? Typically, with their first child they spare no expenses and have no reservations for cost or budget. They purchase top of the line products, brand name items, and gadgets with all the bells and whistles.
Many entrepreneurs have passion, but lack the basic financial skills to prepare a budget, read and analyze financial statements, and create a financial dashboard to drive their short and long term decisions. Unfortunately, lack of financial understanding leads to the demise of many really great business ideas, dreams, and plans for entrepreneurs embarking on their initial journey of entrepreneurship.
The entrepreneurship journey is self-encompassing and a silent budget killer. If you are an entrepreneur or thinking about becoming one, I would like to share 3 tips I wish was given to me at the start of my entrepreneurial journey. Knowing these tips could’ve benefited me at the start of building my empire without sabotaging my budget. I hope my tips make cense and eventually help you make dollars.
Tip #1: Maximize your current employment to grow your business.
If you are a full time entrepreneur or part time hustler, keep your current job! Especially if it’s a consistent paycheck flowing in. Quitting your job prematurely can cause unnecessary financial strains on you and your family. It may also stunt the growth of your business and your overall performance for your client base.
Tip #2: Do not commingle your personal finances with that of your business.
Open a separate bank account for your business, in the name of the business, and use it for your business only. You want to accurately track both your cash inflow and outflow for every transaction made under your business name. Not only is this practice good to assist you in running an efficient budget for your business but also for tax purposes. You don’t want Uncle Sam (IRS) coming for you and your personal finances in case of a tax audit.
Tip #3: Delayed Gratification.
I don’t know what entrepreneur needs to hear this but you don’t need that spruced up website that costs $1,200+ in the beginning. Especially if there’s no traffic on your other platforms (social media) that are generating revenue. That bulk order can wait until you have generated revenue with your current inventory. As your business grows you will/can upgrade your current functioning website, redesign, rebrand and purchase more inventory as your budget allows.
In conclusion, take your time and spend your money where it matters MOST (whatever it is that makes dollars for your business). Take it step by step. Attempt to pay cash for your business needs. If you’re going to use credit be sure it’s an amount that you would be able to pay off in a lump sum payment or 2 payments maximum. Refrain from doing anything in excess. Utilize your free to low cost resources (Fiverr, Vector, etc.) to maximize your business needs and it’s potential because that’s what makes cense. -Moni
“The Marathon Continues!” –Ermias Asghedom aka Nipsey Hu$le