3 Simple Financial Advice Tips for Entrepreneurs
You won’t be that voice of change unless you got enough change in your pocket. I say this with the utmost respect and quite frankly, I say this first to myself as an entrepreneur. I own a marketing agency in NJ. Most of us venture into entrepreneurship because we want to be that game changer, the one who can create social or cultural change for the rest of the community. Dandy, is it not? But while we may have the most sincere intentions, we fail to realize the most sincere intentions do not necessarily translate into action.
I want to debunk some of the financial misconceptions and myths on entrepreneurship. Again, let me remind you this is by no means a way to discourage you from pursuing your dreams (so cliche!), but my true intention is to prepare you for what you do not expect as the reality of entrepreneurship. This is based on my experience as an owner of a marketing agency in NJ.
Entrepreneurship Financial Advice
- Think like an investor. Entrepreneurs cannot be afraid to take risks. In this game, you win some, you lose some. Accept that there will be times in your business that you will lose tons of money. Yes, this means possibly filing for bankruptcy, credit card debt, or going negative on your accounts. This is the brutal truth when you launch your own business. But also accept the fact that you will make tons of money, bring in new client contracts, and double your sources of revenue. This is the name of the game and you cannot be afraid to lose as you certainly will not be afraid to win.
- Get Yourself a financial advisor that will help you plan your retirement and also advise you on how to reinvest your current accounts into profitable money making accounts. For some reason, financial advisors are like therapists – no one wants to see one unless they are in deep trouble and no one wants to admit they need one. But trust me, from experience in owning a marketing agency in NJ, financial advisors are your best friends. They are experts in what they do and they do just that: give you advice on your finances. As a small business owner, I had no idea there were creative ways to invest my assets until I sought the help of a financial advisor.
- Separate your business credit card debt from your personal credit card debt. The two are not married nor are they engaged, and they should not be. Your business budget sheet and expense report should be separated from your personal expenses. In cases such as filing for business bankruptcy, lawsuits, or division of wealth, separating your business from your personal accounts works to your advantage. Go talk to your attorney about this.
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