On Being an Entrepreneur - Take Control of Your Personal and Business Finances

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One of the main reasons to become an entrepreneur is that you want to be your own boss. After working in an industry for any length of time you know there are better and often more efficient ways of doing things and this is what you’d like to try. You know there is a market for your product and you believe that with your innovations you can corner the market in your area. However, that isn’t all there is to being an entrepreneur and starting your own business throws a lot of other potential problems your way. If you are intent on becoming an entrepreneur and starting your own business, keep in mind that some of the amenities you once took for granted won’t be there anymore.
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Financing Your Business

When you were working for someone else you never had to worry about where materials and supplies were coming from. You simply put in a requisition and the boss or the warehouse made sure you had what you needed in time to complete a project. Now you are the boss and it’s up to you to see to it that you have what you need. This takes funding because nothing comes free, as you well know, so you are now responsible for getting business loans or finding financial backers. This is something you probably didn’t realize was quite such an undertaking.

Financing Your Personal Future

Then there are all those ‘perks’ that are no longer there. You no longer have a retirement fund matched by your employer and there are no more paid holidays and sick days. Every day you lose is money down the drain, so to speak so many entrepreneurs work year round, day after day, until their company makes enough profit or can run without you there before it is possible to even think about a summer vacation. You wanted to start your own business but perhaps didn’t stop to think about losing all those benefits you had taken for granted. Yes, your company will probably take off and at some point may even beat out the competition (your old job – wouldn’t that be nice?) but in the meantime, shouldn’t you start planning your financial future?

Setting Aside Investment Funds

From the very beginning, no matter how tight your budget, you need to think about setting aside an investment fund that will grow over time to give you a tidy amount to retire on. Take time to set goals for your future in terms of both time and money. Where do you want to be in five years? Ten years? Twenty years from now? A financial advisor can go over various options with you so that you can pick and choose the type of investment funds that make the most sense for you based on future goals. Investment funds for your kids’ college education will probably need to grow and be made available much sooner than your retirement funds would be. How can you accomplish this and what investment funds would potentially offer the yield you need?

A Look at the Type of Investment Funds to Consider

Most of the time when you work for a company you are given a minimal amount of choices where you would like to invest a portion of your pay. Your company board of directors look at several options before settling on a few that they think will benefit their employees most. At the time of your hire you can elect to join these programs or opt out. If you are not a solo operator and have employees, you will need to be the CEO for your new company. Consider who your core employees are and the kinds of lifestyles they lead. You can get a sampling from that and project future needs as your company grows. Now it’s your turn to let your employees opt into benefits programs.

You may not be able to match their funds dollar for dollar but you could contribute something. In time you may be able to match those funds but until then, at least give them something to be inspired by. You are taking control of your own business finances, your own personal finances and helping your crew to take charge of theirs as well. It’s a learning process for both you and your employees but being an entrepreneur and living your dream is a reward beyond compare. So, you may need to make a few adjustments in your thinking as well as the way in which you live, but in the end you do have something to work for so it’s well worth the effort.


About

Boris Dzhingarov is a freelance branding & marketing consultant, advising companies and businesses on all aspects of internet marketing, SEO, web design, graphic design, and PPC (pay Per Click). He is the founder of Dzhingarov.com , www.traveltipsor.com , www.blogforweb.com , www.healthannotation.com and www.monetarylibrary.com

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