Being an entrepreneur involves not only having a business idea, the resources to make it a reality, but also understanding that money is a factor that can lead to success or failure.
The 7 financial tips that every entrepreneur must take into account
When you are an entrepreneur, one of the main difficulties is thinking about money. This is one of the seven fears that can make him desist from making his dream come true.
However, financial well being 7 made a compilation of the best financial advice you should take into account when it comes to becoming independent and forming your own business:
1. Save before you start
The Mastercard experts point out that since during the first months you will not have with fixed income, it is important to save so that you can count on the resources that allow you to cover expenses during that period of entrepreneurship.
Also Jason Papier, stock options expert in Silicon Valley and the president of the financial management firm Fluido Wealth Partners, explained to Entrepreneur that the best thing is for employers to take into account the value of personal expenses that can be counted during a year.
2. Reduce monthly expenses
Financial freedom is the real freedom. If you do not have a “robust” savings, it is best to cut costs: cable TV, switch to a low-cost cell phone plan and stop eating out.
Even if you are an entrepreneur, you should be aware that the diet of tuna and rice can be a good alternative during the first years of business.
3. Separate business finances with personal ones.
This is one of the worst mistakes in the financial issue, since you can not “borrow” for your personal belongings or for your business, such as making profits to be invested in personal expenses.
Mastercard suggests that to avoid this, it is important that the entrepreneur is assigned a fixed salary and not have more money than stipulated.
4. Get help from your friends and family.
Your family and friends are the main help, who can provide you with money to start your project. Of course, for your safety and theirs, make sure everything is registered.
5. Keep debt under control.
Remember that there is always a point to control your debts. Not everything can be bought in a single moment. Therefore, write a list of priorities and, as the business develops, acquire what you need.
6. Consider taking a break from saving for a pension
Entrepreneur points out that many entrepreneurs, at the beginning, do not save for their retirement and the investment advisors consider that this can be a wise bet. The publication points out that “95% of entrepreneurs who have worked with having taken that approach”.
7. Protect yourself
The Inc. portal ensures that the most important thing is that you protect yourself and always safeguard your assets. This also refers to the issue of insurance, not only of life, but also of health and real estate because, if you do not have it, an accident at work can ruin your finances completely.