Starting a business will no doubt show you what you’re made of.
How you manage your money will make or break you!
You’ll either find out that you’re really good at managing money or really bad at it.
When I started my online business I knew that managing the finances wouldn’t be too much of an issue — especially since I have a background in accounting for the past 10 years. But even with my extensive knowledge and practice with managing money, I still found ways to improve my money managing skills.
Since then, I’ve honed my skills and become much better at the financial aspects.
Here Are Five Ways to Handle Your Money Better:
1. Know Your Strengths and Your Weaknesses – You cannot do it all. It is important to recognize what you’re good at and what you’re not good at. If you’re bad with bookkeeping, hire a bookkeeper.
2. Seek out Efficiency – Financial experts suggest that automating your personal finances is one of the smartest things you can do to get ahead. Likewise, creating systems and automating the way your business finances are handled is just as important. This stops the headache of paying the bills, handling mail and other paperwork, and ultimately, it will save you time and money, while helping you establish good credit history.
3. Get Organized – Being organized with paperwork, calendars, schedules and your business systems, is vital if you want your business to be successful. Otherwise you risk losing all the time and money you’ve invested into the business so far. Consider organizational programs like Basecamp, Evernote, and Dropbox to organize all of your files, photos, etc. The same principal applies to your money, because if you’re not organized, and don’t understand all the ins-and-outs of your finances, it will no doubt collapse. Bootstrapping your business and creating systems to help it run lean, will ensure it’s a big success!
4. Wheel and Deal – Entrepreneurs are strong-willed, determined, and do not back down easily from something they want. They also tend to think “outside the box.” So when it comes to negotiating contracts, making purchases for your business, or hiring team members, be sure to negotiate. Also, consider bartering for goods and services.
5. Set Financial Goals – You need to have tenacity when it comes to paying off debt, keeping your expenses lean, and increasing revenue. It takes a lot of hard work, but by creating goals and following through with action, you can reach outstanding financial freedom. I experienced this with when I started my side business. It propelled me to create financial goals, which in turn enabled me to hit my goal of being debt-free within one year. This created a jumping off point for taking my side business full time and have been able to build on that solid foundation.
You don’t have to do all of these at once, though I encourage you to incorporate them all eventually. Just pick one a week to focus on until you have completed all six ways to help handle your finances better.
Carrie Smith is the founder of Careful Cents, a site aimed to help serious solopreneurs and full-time freelancers make valuable connections and grow their business. Find her on Twitter @carefulcents.