Many people who started a business have no idea on the financial aspect of the business, they simply have the talent or skill to deliver a product or a service and they are good at it. Once they have started as business, they become entrepreneurs learning the ropes and of flexing their financial muscles. The same is said for most mom entrepreneurs. They are mostly the creative types such as artists, writers, trainers, counselors, photographers and for them, the financial aspect don’t come naturally. If you’re a mom entrepreneur or you own a business of any sort, it’s also your job to know about the money. You have to know if there is something wrong and you have to track your business growth as well.
So here are some pointers to help you work up those financial muscles:
Separate a checking account for your business. Once you’ve turned your hobby into a business, it should have its own financial capability. Some people put this off until they are making money, but having it’s own account makes it cleaner for the business to tax and this will make you take things more seriously.
Set a salary for yourself. Most entrepreneurs overlook the importance of this especially in the start up stage. If you pay your bills, vendors and suppliers, you must also set aside however small an amount for your salary otherwise, you will only burn out soon enough.
Consider hiring a bookkeeper. Because most mom entrepreneurs are not expert in finance, outsourcing a CPA or a bookkeeper is your best option. Preparing tax returns and bookkeeping is a strenuous activity for those not made for this. You may only end up frustrated and irritated if you insist on doing someone else’s job. So don’t miss out fun time with your kids and family pouring over accounting books when someone else has the calling and capacity to do it.
Monitor and manage your cash flow. For many moms, this can be quite a challenge, but with simple spreadsheet monitoring, you can look into your sales, expenses, receivables and returns. Focus on the numbers that will help you decide for the good of the business.
Women and mom entrepreneurs tend to ignore the financial aspects of the business. However, you will have to deal with it otherwise, you might not notice issues or problems when they arise. If you really are into running a business, you have to set boundaries on yourself, time and money.
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