Show Me The Money (Management)! Financial Tips For Entrepreneurs
In a recent article on the VIKTRE Career Network, we highlighted four tips from future MLB Hall of Famer Derek Jeter on becoming an entrepreneur. Once you decide to pursue a career as an entrepreneur, one of the most challenging (but also most appealing) aspects is being your own boss and having to deal with all business components yourself. Among these is financial management for whatever your new venture is, but also yourself.
This is an increasingly popular career path for both retired athletes and current working professionals looking for a career change. Whichever category you fall into, proper financial management and planning is crucial. Budgeting and saving are two great ways to start on the right foot, but can be easier said than done. Sometimes we need a little more help, especially when it comes to money management.
In an article for Entrepreneur.com, Co-founder and CEO of Dizzle and SnapNHD Will Caldwell provides tips for burgeoning entrepreneurs to effectively manage their money and set them up for success throughout their career. These include:
Organization can take on different meanings for different people. Some people need their workspace clean and in order, while others can get by on what they consider “organized chaos.” When it comes to your finances, being organized is very important. This organization can come in the form of maintaining records of all transactions and staying up-to-date on paying bills. Keeping all your financial information in one place can help with organization.
Caldwell recommends organizing your financial information by category, such as “urgent” and “future” when recording current costs. Not only is this beneficial for your entrepreneurial venture, but it can come in handy for your personal finance as well.
Check Your Credit
Do you know your credit score? While the common train of thought has been that checking your credit score actually hurts your credit score, it is actually not the case. There are plenty of free resources available to check yours, such as Credit Karma.
Your credit score comes into play in a variety of ways as an entrepreneur. Just like buying a car or a house, funding a new business can depend on your credit score. If you’re worried about your credit and want to improve it, check out this blog.
Want to be profitable at this time next year? Do you want to sell your business in the next five years? There are a variety of goals you can set for your new venture and career as an entrepreneur. The key for these is to break them down into short and long-term goals, and to make sure that they are “SMART” (Specific, Measurable, Attainable, Relevant and Timely). Without any goals, why are you running your business?
Find a Mentor
A mentor can have a tremendous impact on your career, but sometimes finding one can be difficult. Not only are mentors influential in terms of advice, since they’ve likely been in your position, but they play a key role in the development of your network, introducing you to people you otherwise might not have had access to.
When it comes to finances, mentors can impart advice that they’ve learned along the way and share best practices on how to run a successful, financially stable, business venture. Additionally, they can introduce you to financial experts in their network.
Although it is becoming an increasingly popular career path, being an entrepreneur is no easy task. One of the hardest parts of entrepreneurship is having the financial stability and security to successfully run and support your new venture. By using these tips, you are taking the first step towards success.