5 Financial Tidbits For Every Entrepreneur

Finances are not everyone’s strong suit, especially entrepreneurs - who tend to be big-picture thinkers and don’t necessarily want to get stuck in the detail of things. Regardless, this is something worth considering and taking note.

Here are five tips every current or aspiring entrepreneur should take note of:

1. Don’t Postpone Bookkeeping Activities

One of the most common errors that most aspiring business owners make is delaying all things related to the accounting portion of the business. 

If you realise that you’re not financially savvy or inclined, make sure that you either find/employ someone who is - quickly - or, invest in other software that simplifies this for you.

2. Get Familiar With Your Seasonal Cash Flow

Another major tidbit is ensuring that you have a keen understanding of your annual flow of money. By paying attention to such flow, you get aware of when you have your seasonal peaks and valleys - that way you’re able to plan and set aside financial cushions that would get through those slow business periods.

3. You Don't Have To Start From Scratch

It is a common misconception for most small business owners - software or serviced based - that when starting an entrepreneurial endeavour, all aspects of the company needs to be created from the scratch (for the sake of being authentic).

The tricky thing with that approach is that it’s a considerable time investment and financial waste.

A much more realistic approach is focusing on your primary business strengths, and utilising other existing providers and services (which have already been perfectly fine-tuned). That way you’re not reinventing the wheel and saving time and money in the long run.

4. Don’t Undervalue Your Time and Relationships

Most entrepreneurs think that they have to spend a disturbing amount of time (often to the detriment of their personal health and relationships) in their business to make it profitable.

Again, this mentality is not really helping your business.

While this kind of time investment is needed to grow the business, it should only be done for a particular period - not all the time. If you have to work for say 80-95 hours a week to keep your business afloat, it doesn’t always mean you will be profitable in the long run.

5. Don’t Be Afraid To Ask For Bargains

The last tidbit here is to become a bargain-hunter! Don’t be shy about looking, and, asking for discounts from your suppliers. You might just be shocked at how willing and sympathetic other business owners are - so don’t be afraid to ask. Remember, nothing ventured, nothing gained.

In conclusion, here are some other practical tips on budgetary and growth you might also want to review as a small business owner.