Running your own business requires you to be an expert in almost every field, especially finance. Arguably the most important part of keeping your business alive is being financially savvy. In the beginning stages of starting a business, income will not always have a consistent flow, and you will need to take control of your personal finances. While building your empire, your own personal finances should be a priority as well.
These days there’s literally an app for everything, even managing your budget. Depending on what your financial situation is, there is an app to help guide you to your financial goals. They can alert you when your payments are due, set and monitor monthly budgets, keep up with your credit score, and even manage your investments. When your business is priority number one, it is easy to forget about yourself and your responsibilities. Budgeting apps will directly link to your bank accounts and really bring to light where you can be saving money. Some notable mentions for highly-rated personal finance apps are Mint, You Need A Budget, Acorns, and Personal Captial.
Every financial expert will tell you to diversify your portfolio. Statistically, your business has a greater chance of failing than succeeding (sadly). Spread your money across different channels to give yourself a little breathing room in case you do need to pivot your business venture. Many entrepreneurs get stuck in investing in the same industry because it is what they know. Diversifying your revenue stream into other industries will open up other opportunities that run independently of each other and create constant growth all around.
Many times as things get more complex, people will advise you to seek professional financial advice. Be very careful about who you choose as certain financial professionals don’t actually have a fiduciary obligation to work in your best interest. The best option is to find someone who is paid hourly rather than as a percentage of your assets. This ensures no conflict of interest. That being said their advice can be invaluable and can set you up on the right track if you are struggling
Separating business and personal finances is key. The sooner it is separated the better. Take control of your personal finances the same way you take control of your business.