Saving money as an entrepreneur is easier said than done. Financial specialists recommend that as an entrepreneur, you need to save a bit of money every month. Co-founder and CEO of Dizzle and SnapNHD, Mr. Will Calder says that if you want to start a company, you need to break away from this cycle and start budgeting and saving. At times, this will be a trying task, but it must be done if you want to succeed as an entrepreneur.
If you want to start managing your money effectively and set yourself up to become a successful entrepreneur, here are some tips from Mr. Calder:
- You need to prioritize organization. When you are organized, you can track every minute detail about your finances. Keeping record of all your financial information in one place helps in reference and keeping track of your progress.
- Check your financial statements often. According to a recent Money Tips survey, nearly 30 percent of those surveyed do not check their bank statements. Understanding your expenditure and improving it to the best of your ability is paramount when it comes to money management. As an entrepreneur, you should know that banks check into your financial details before issuing you with a loan to grow your business, hence making your financial statements very important.
- Save when you can. People often cringe on the mention of cutting back. Keeping your receipts will help you know on what you are overspending on. For example, instead of having an expensive lunch every day in a restaurant, consider carrying some homemade food and water. Slowly you will get used to this new habit, and your bank account will reap the rewards.
- Search for additional information on financial blogs and other social media platforms. Subscribe to websites and follow podcasts that offer advice on money management, also keep up to date for informative outlets that speak directly about entrepreneurial finances and follow them too.
- Set long and short term goals. Have you noticed how fast people want their projects to move and realize returns? Pick up any health magazine or weight loss mobile application and check the articles that claim you will lose weight in four days if you follow their instructions. Unfortunately, crash diets are often ineffective and “get rich quick money” management techniques often lack substance. A business requires time, energy and patience. Great businesses were built in blood, sweat and tears. As an entrepreneur, you need to have a strong work ethic, be visionary, dependable, motivated, resilient and inspiring. Sometimes, it is hard to accept that your goals will take time to accomplish, which is why you are advised to create short and long term goals. In either case, aim at making goals that are specific, measurable, attainable, relevant and time bound. Ideally, accomplishing your short time goal will give you the positive feedback that you need to continue striving for your long term goals.
- Find a mentor. Most entrepreneurs describe the process of financial planning as being quite overwhelming. As an individual, you can seek mentors who can help you with personal finances. You can also seek more established financial consultants who provide you with guidance you need to run your business. Managing your finances is a trying and rewarding experience. The more you practice, the more you’ll improve your finances and set yourself up for entrepreneurial success.
Quote of the Day: Wealth consists not in having great possessions, but in having few wants.