There are several business owners (aspiring and established) out there that have all the business savvy in the world, but they lack healthy financial habits. Without a healthy grasp on governing, maintaining, and generating finances some businesses may meet demise when they simply didn’t have to. Poor financial habits are business kryptonite.
Check below to find out what you can do to ensure that demise by way of finances doesn’t happen to you:
- Strong network. You’ve heard the saying “your network is your net worth?” Well, it’s true. Building and cultivating relationships can be imperative to assuring that not only are you constantly generating new customers, but you’re also chock-full of resources. Imagine what the people you know may know. Then imagine how what these people know may someday help you. Keep a strong alliance of successful businesspeople around you at all times and you, too, will achieve success. It’s just how this works.
- Plan and budget. Have a business plan. This plan will force you to really assess your business from all angles prompting analysis of competition, a study of the industry, and an evaluation of your skills. Use your business plan to map out a realistic budget that includes the cost to operate your business, a break-even point, and what it takes for profit.
- Mind your wallet. Pay small until you can pay big. This tip is particularly helpful when starting your business. Spend on essentials, yes, but don’t ignore the many free resources out there. There are websites, logos, employees (read: loyal, indebted friends), even work spaces that you can take advantage of at little to no cost. Do your research to avoid overspending out the gate. Build your business on a budget while you generate the funds to put back into your business.
- If you can’t, find someone who can. Listen, it’s clear that you’re thorough and amazing; you’re an entrepreneur for goodness sake. What this doesn’t mean is that you have to be great at everything. Admit to yourself when finances aren’t your thing and find someone whose thing it is. The best thing you can do for yourself is solicit necessary help—especially when dealing with numbers. A bookkeeper or CPA can be your saving grace. Seek and find.
Hear expert insight on the financial habits of successful business owners at the 2016 Black Enterprise Entrepreneurs Summit, May 4-7, Loews Miami Hotel, Miami, Florida, where panelists will share their lessons learned while starting and growing their business. REGISTER NOW.
Be sure to follow Black Enterprise on social media @BlackEnterprise for Entrepreneur Summit news, highlights, and updates. Use hashtag #BESummit to stay in the loop.