It is always a joy to see individuals take a leap of faith, be bold, be creative, step into their purpose and use their talents to serve mankind. There are so many needs out there that require solutions and answers. To the few brave ones who step out into entrepreneurship, I salute you.
Congratulations on your achievement.
Entrepreneurship requires dedication, focus, and consistency in order to survive. The lifestyle has its highs and lows but can be rewarding if proper systems are put in place to make your money work for you.
If you are an Entrepreneur or small business owner and you feel like you have accomplished nothing despite operating for some years now; you feel exhausted, overwhelmed, worry about money, demotivated, tired and fatigued or you are new to the lifestyle and want to prepare yourself for the best outcome then you may need professional help from a financial coach.
People focus a lot on personal wealth management, however, Entrepreneurs can easily be
neglected in the grand scheme of money, financial management, and money mindset. You don’t need someone to manage your money for you. Instead, you need someone to help you improve your money mindset, teach you financial etiquette, hold you accountable and provide a listening ear from a business perspective.
Most small businesses fail in the first few years because of the absence of proper financial planning or the lack thereof.
Here are a few reasons why it is important for your business to have proper financial planning:
Goal Setting
Financial planning sets the tone for your business goals. Goals are extremely important when running a business. Without goals, you are operating blindly and without form. Setting goals dictates how you will operate and is truly the roadmap to a successful business.
Smart budgeting
We have heard about budgeting multiple times in our personal capacity but did you know that your business also needs to operate within the realm of a budget in order to manage its finances better? A budget will set a clear pathway for how funds are spent and received and give more clarity to your money.
Effective cash flow management
I cannot stress enough how important it is to manage your business’s cash flow effectively and smartly. Improper management of the inflow and outflow of cash with proper record keeping and monitoring is one of the main reasons some small businesses fail or have not reached their full potential.
Being Investment worthy
If you want to grow your business you will need to prove to investors that your business has the potential to grow and show stability. This information can only be proved through proper financial management and goal setting.
If you already have investors, then they will need to review the financial health of your business whether monthly, quarterly, or annually and discuss future financial plans. Transparency is key for potential investors, existing investors, and staff members.
Growth roadmap
Last but not least, financial planning helps you to assess your past and present business situations so you can properly plan for the future. Growth is necessary for survival and as Entrepreneurs, you need to know that you can get there.
The most popular excuse I have heard from Entrepreneurs and small business owners is that they thought financial planning was for large corporations only. They don’t think they have enough money to plan financially. They will wait until they grow to put these things in place. But how do you know if the business has grown without financial planning? What does growth look like for you? Please understand that large, successful organisations did not get there by chance, they got there by investing in professionals who help to provide financial guidance and implemented the above strategies. Whether you are a sole trader, partnership, or Limited Liability company this all applies just the same. The aim is always growth and financial success.
There is no time like the present to start planning for the success of your business. Your personal life depends on it too.