How to manage your money better as an entrepreneur – 5 tips

How to manage your money better as an entrepreneur – 5 tips

As an entrepreneur or business owner, you know that sometimes you have to spend money to make money.

But, you also have to save money to have access to that money!

And saving more money consistently ranks as a top financial plan people make each New Year. For many people, the start of a new year is the trigger they need to change their behaviour patterns to set themselves on a lifelong journey toward financial security and self-sufficiency.

For an entrepreneur, it always seems that spending money and investing in improving systems and products is needed but did you know that you can also make the effort to plan your finances better so that you can indeed, save money.

Yes, save money as an entrepreneur. It can be done.

Check these tips to discover how to.

1. Change your money management pattern from inside – not due to outside pressure.

It is the internal thought processes that prevent (or enable) permanent, life-enhancing change; answers why some people are able to set a life-changing goal, meet it and keep themselves from relapsing.

The answer is, regardless of how ingrained our habits are, change can and does happen from inside out.

So change the way you approach money in your business venture  – if you must spend, also make it a point to put some away. You will be surprised how you can save when you change the way you manage your money from within. Build in into your system – start small but be determined to make it happen.

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2. Start small but stick to it.

One small stream can become a great river.

Remember that you can and must start small without going for big savings. Eventually, it can become a great resource. Put something away every week – don’t touch that reserve under any circumstances. Be determined to keep it that way. Starting small is always great because saving small can be achieved as opposed to big plans to save big which may not happen in reality.

Remember that the outflow must also match even marginally the inflow. Develop good money management habits and they will keep you in the safe zone.

3. Keep your spending in check –

It is very tempting to spend when you are starting a business – promoting the business, building the customer base and improving systems all need money. But tempting as it is, try to keep in check your spending pattern. Develop a plan and stick to it. No matter how needed it might be, put yourself through a strict evaluation process and build it into your operating pattern for greater success.

4. Invest in the right things –

You must be able to make prudent decisions on what requires money and what doesn’t. Some processes will only drain your funds while others would be much-needed investments. Make sure you invest in the right things – don’t go too deep into spreading your funds. Focus on what needs to be done in order to have the business up and running. Watch yourself and don’t get carried away.

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5. Practice appropriate financial management from day one –

Develop sound financial principles from day one and they will not let you down. Stick to the rules and make sure you abide by them. Good financial planning comes from scratch. You don’t need to spend a lot to make an impact on your business. Remember that being an entrepreneur calls for prudent financial management – at all times.

Got an entrepreneurial story for us? Email us at theeditor@vypara.lk

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