Understanding Finances For Small Businesses
Entrepods has now officially moved into season 3, and with that comes more amazing guests. We kicked off this new chapter with guest Amanda Neely of Grandma’s Wealth Wisdom. Amanda is a successful business owner and has brought in a large amount of profit, sold her businesses, and helped other entrepreneurs discover their financial power.
Business Finances Made Simple
As entrepreneurs, we all know that business finances can be quite the hurdle to jump over. Whether we are in the beginning stages and starting our business from home or we’re expanding into a larger corporation, the financial aspect of this will always be looming over our head.
“Let’s get serious about money as soon as possible” - Amanda Neely
When it comes to business finances, there are three simple rules you should follow:
Make a roadmap for your finances: Plan where you would like to be in 3 months, 6 months and so on.
Understand financial jargon: Be knowledgeable in what investors and partners may ask of you or talk about. Showing them you are an integral part of the industry will show them how trustworthy you are.
Save: This may seem like a no-brainer but you’d be surprised how many business owners will skim over this. Save your profits for both your business and personal accounts. This will allow you to invest back into your company.
“Making sure we were personally benefiting from our business so that we could have wealth outside of it.” - Amanda Neely
Though your reasons for starting your own business may differ from someone in your network, the logistics of finances can apply to a vast majority of small businesses being started. Being able to personally benefit from your business will allow you to enjoy your work, remember why you started, prevent burnout, and ultimately keep you prepared.
Learn Your Business Expenses
As stated above, it’s important to be financially literate in your business expenses. We think this is so important that we made this section specifically dedicated to it. If you are financially illiterate in your day to day operations it could have negative consequences and lead to unwanted territory.
“How is the business going, is it working for you and in what ways is it actually giving you life and joy and in what ways is it stealing your joy and causing you stress?” Amanda urged us, as well as her clients and our listeners to ask ourselves this question. After all, if it is stealing joy and happiness from you, it might be worth it to take an introspective look and figure out what is going wrong.
“I feel like what keeps a lot of entrepreneurs back from some of those big opportunities is that they don’t have financial confidence.” - Amanda Neely
Although it’s important to look at the bigger picture of the financial aspects of your business, it is equally important to observe the smaller details. Which department is using what? What should be expanded? What can be downsized? This will then help lead you to the questions of: How do I approach investors? Can I add more employees? And more.
Avoid a financial crisis by learning the financial basics. This will help propel your business forward and give you an edge up against your competitors. Finances and stress come with being an entrepreneur but it could be significantly reduced in just a few simple steps