Entrepreneurs have a dormant need to take charge. They’re the ones who often talk to clients and are present at every meeting. They regularly hit the gym. Put simply, they outwardly appear to have every little thing under control, after all it’s in their nature.
Nevertheless, when things boil down to handling finances, most entrepreneurs tend to hand over the responsibility and control onto the shoulders of someone else. But, how can one truly be in control if they cannot get their head around one of the most important aspects of their business?
If You wish to Be Successful, Find Someone Who Has Attained Better Results and Follow it
Of course, every entrepreneur wishes to be successful one day. If you’re one of them, then the best way for you to reach that level is to follow the footsteps of people who have accomplished their goals.
Try spending some serious time with people who are already successful, compiling everything and implementing it into your business. Sure, no one is guaranteeing that you’ll be able to accrue £150 billion in double-quick time, but it could help in empowering you and allow you to take more control.
- Successful People Ask Better Questions and Receive Better Answers
You don’t really have to be a certified financial planner to ask better and smarter questions about your money. All you need to do is understand the ‘3 F’s.’
- Fees and Tax
It’s quite obvious that you should have full control over your tax as well as any fees. It’s a given that you cannot have control over the market, but you can control how you operate within it. When you do that it means you’ve won half the battle.
It is imperative for you to have a clear understanding of mutual funds. For example, index funds follow an index, which is why its taxes and fees are lower. On the other hand, actively managed funds charge you a certain amount and allow you deal in a way to find out whether it fits your business or not.
Do you have a trustee or accountant who has been controlling your finances? A trustee or accountant deals with investments that are “suitable” for your business. This in turn leaves a lot of room for other dealers in the market to sell products simply to get their commission on it. On the other hand, a fiduciary takes up the responsibility to look out for investments that work wonders for you.
Learn the Power of Selfless and Sincere Contribution
When you have full control on your life, objectives, dreams and finances, you’re on the path to experiencing ultimate fulfilment. Not to mention feeling fulfilled also means giving back.
One thing you need to bear in mind is you must take complete control of the factors in your life in order to succeed in this business world. You also need to be able to attain a certain level of fulfilment wherein you ensure you’re not just flourishing constantly, but are also contributing.
If You Want to Take Control of Your Life, You Must Separate Your Business and Personal Finances
Being an entrepreneur, when you’re about to start your own business, it’d be better to separate your business and personal funds. In this manner, your business would not only gain a sense of authenticity and credibility, but in certain scenarios it might also decrease your personal liability if something negative were to happen. Not to mention, you’ll also be organised whenever it’ll come down to handling bills, paying taxes and other payments.
When you separate your finances, you’re ensuring that any business finance, such as cash flow, property finance or invoices are being repaid through the corporate account. Also, why would you use your personal account to repay loans that are taken out for business purposes?
Of course, the rule is very simple but crucial for you to keep in mind: Separate your personal and business accounts and document the profits earned to yourself.