Preparing to open the doors for the first day of business is enough pressure for any new business owner. All the marketing, planning and hard work is so important that other parts of your business can get forgotten – like the fact that becoming a business owner is a huge financial adjustment.
Luckily for you, our Cash Flow Cure Coaches have all been where you are. They all own their own businesses and have overcome the obstacles that are staring you down. We polled them to learn the biggest financial challenges they faced when they opened their business doors. Here’s what they have to say:
Mick Aspinall, Founder and CEO
“Lumpy cash flow in comparison to a relatively regular and predictable income. The cure is to develop programs that generate recurring revenue to provide a solid base to operate from as you create the various lumps of income from other programs.”
Every new business owner will have to adjust to an irregular cash flow for a time. It’s not easy, but with careful planning you can eventually even out your income.
Vikki Morgan, Founder
Independent Woman By Design
“Losing a regular income to start with was a shock. It meant that we had to go without and adjust our spending until the business could support a wage. Even then at the start it was much smaller than my previous one. We had to sell our home and downgrade to bring our finances into balance whilst I was building the business.”
If your business is something you believe in, you’ll do anything it takes to make it work. Sometimes that means giving up pieces of your lifestyle for a while. But the Financial Freedom that will result is totally worth it.
“Really watching my expenses so that I didn’t take on debt and dig myself into a hole. I learned to save for future expenses so that I could pay cash as I went along. It also meant I really needed to determine a want from a need. I stick to NEEDS.”
It’s way too easy to think that debt will fix all your business money woes. But it won’t. Instead, focus on differentiating between wants and needs so you can get rid of excess expenses. Then, start saving as much as possible to pay for those needs.
Julian Musgrave, Advisor Principal
Your Wealth Matters
“Paying taxes and collecting money…it’s not automatically taken care of for you.”
All that independence you craved from self-employment? Yeah, it also means you’re the one responsible for making sure the government gets it’s share. And it means you’re responsible to make sure your clients pay up.
No matter what, opening your own business gives you the power to take charge of your future and to control your Financial Freedom. All those early-day hardships are just part of the journey to give you a secure financial future.
The views and opinions expressed are those of the guest author and do not necessarily reflect the views and opinions of MindShift.money.
Some answers have been edited for length and clarity.