Venturing into the world of entrepreneurship can be a daunting task. It's easy to lose focus of your original goals during the chaotic launch of your own private enterprise. To help keep you and your business on track financially, here are some tips to consider when shoving off on a course bound for growing personal wealth.
Tip from an ex-peak performance strategist
More often than not, former businesspeople who seek to become their own boss aren't fully prepared for the scale of the tasks to come. Roberto Monaco, a Peak Performance Strategist and speaker for Anthony Robbins Companies, was one such unprepared dreamer. He decided to take what he'd learned as a speaker and apply it to his own enterprise. As Forbes contributor Garrett Gunderson noted, Monaco learned a few important lessons before success finally came his way.
Monaco followed his first inclination and purchased real estate his business needed once he turned a bit of profit. The end result of Monaco's investment error was a loss of money, though not enough to compromise his overall endeavors. The lesson Monaco ultimately learned was about keeping focused on the ultimate business goal, and the necessity of letting distractions - and fancy, unnecessary investments - fall by the wayside.
"It's been one of the biggest lessons, because for any investment, I ask myself 'Does this align with my Soul Purpose?' And if it doesn't, I don't get involved," he said.
The following are a few more tips from experts on best practices for getting a new business venture off the ground:
Small businesses are like rocket ships: it takes a lot of effort to get one off the ground. In the early stages, a founder may find their personal finances strained to keep their growing business prospects alive. This situation stresses your personal budgeting, and if you're trying to start a business during a lull in the economy, you might need to cut a few extra corners. The best way to do this is to prioritize the things you need in order of necessity. According to Entrepreneur, a few good ways to cut startup costs are by limiting your new business's real estate, hiring no more employees than you need early on, and by not wasting excess cash on external advertising.
"Small businesses are like rocket ships: it takes a lot of effort to get one off the ground."
2. Be a good bookkeeper
Jessica Mah, founder and CEO of inDinero - a startup specializing in accounting, taxes and payroll services, has been an entrepreneur since the age of 14. She's boiled down her startup savvy to a few basic methods centered around developing and adhering to basic organizational skills when it comes to your business's finances.
"I make a point to monitor reimbursements and ask questions about anything that looks like a red flag. And that's not to say we don't spend on things that are fun, but those fun purchases are budgeted for and prioritized, just like anything else," Mah wrote in an article published by Inc. Magazine.
3. Take advice with a grain of salt
As Entrepreneur reported, financial planners see the world quite differently from entrepreneurs. No advice will be perfect, but rest assured that you as the founder probably understand your business better than anyone else. At the end of the day, you'll want to follow your gut and try to budget your finances as best you can from the available data. Additionally, make sure you've researched and tailored the best business banking options for your particular venture.
For more information about how you can grow your business, contact Landmark Bank.
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