A strong and knowledgeable business foundation is the key for female entrepreneurs when it comes to success.
Having a curious and proactive approach will ensure you are always looking for ways to grow and improve your business. Not only does this improve your bottom line results but it ensures quality for your clients.
A basic understanding of finances is great but fine tuning your financial skills is a surer way of succeeding in a competitive business market.
It’s important for female entrepreneurs to not only understand the ins-and-outs of finances but also to have supportive foundations and systems in place when taking on the risks of entrepreneurship.
At Financially Empowered my purpose is to ensure business women are equipped with the financial knowledge they need to propel their small business towards triumph. By following these basic steps, and building on them later, you can set your sights on a little more entrepreneurial stability.
So, let’s not shy away from this any longer! If you’re ready to start or strengthen your entrepreneurship, here are the vital areas for every entrepreneur to focus on:
Insuring your entrepreneurship is important, but choosing the right insurance policy is paramount. If you already have a policy, review it. If you’re unsatisfied, start searching other insurance policies.
Consider whether you have shopped around for the best fit for your business rather than just choose a familiar or the cheapest insurer.
It is important to ensure you keep your insurer informed of anything that may have an impact on your policy as well.
There is nothing worse than finding out you’re under-insured when you’re trying to put a claim through after an incident occurs.
Chances are you probably have at least one superannuation account whether this is from a past employer or something you have set up yourself. If you have more than one super account, consider how much you are paying in management fees for more than one account.
You may also want to think about the benefits of contributing extra super in addition to the mandatory 9.25% super paid by your employer; however, find out and understand the tax implications of this before doing so.
And don’t forget to also check for any lost super by going to www.ato.gov.au/Calculators-and-tools/SuperSeeker
All areas of your business need tangible and realistic goals that you regularly revisit and review. Your financials are at the top of this list as you will find a lot of your other goals are dependent on your income. What are your goals for your business, as well as for your personal finances? Maybe you’re aiming to buy a house for you and your family? How much do you need for a deposit and how does that translate to your budget and income goals?
Make sure your goals have a deadline and that you are tracking them and not just writing them down and forgetting them. Find a way to be accountable to what you need to do to reach your goals and break them down into easy to achieve steps.
Know your goals, and figure out how you will make your business adapt to work towards them.
4. Bank Accounts
Review your current bank accounts and figure out if they are suitable for your business and personal life. Can you get the same, efficient service for cheaper using a different bank?
If you are a start-up company, certain banks will waive the monthly bank fee from your account for up to a year. Talk to your bank representative and see what kinds of accounts are available. There are also simpler ways of avoiding bank fees as well, such as using ATMs only affiliated with your bank.
How often have you had cash in your wallet and purse and it just disappears leaving you with no idea what you spent it on? Tracking your spending and making a plan on where you want your money to go is a vital first step.
When you don’t budget, you can potentially spend carelessly, further depriving yourself the financial umbrella you may need on a rainy day. Ensure you factor in savings to your budget.
When budgeting, take your entrepreneurial and personal goals into account. Ask yourself if you need to make changes in your business as well as in your personal life. Work out your budget on spreadsheets. The way someone spends their money is a reflection of their values, and if you value your small business, budget effectively and with care.
6. Mentoring and Advice
All these other tips provide a great holistic plan for your finances but the key to financial literacy is knowledge and the best way to achieve this is through great financial advice and mentoring.
Because many of us are so good at juggling, learning new things, taking on more responsibility, sorting out how we’re going to handle it all, it can be easy to fall into a trap of not asking for help when you need it.
If you are unclear about anything in relation to your finances; be it taxes, savings, debt elimination, or investments, speak to someone trustworthy. Confide in bank representatives, financial advisers, or entrepreneurial organisations.
You can also learn from others’ mistakes by reading books and keeping up to date with financial magazines. According to Entrepreneur Magazine, some of the common qualities among successful small businesses are financial planning, practised strategies, and a work-life balance.
Your response and recovery from your mistakes define you, not the mistakes themselves.
There’s probably never been a better time for women to start a small business. We’re connected, we’re savvy, and the statistics show we’re having great success.
But, as all small business owners do, we face challenges. These tips will assist you to build a strong foundation and system. A bit of time spent getting these right and your business will thrive and grow and you will have the financial means to reach your goals and desires.