By - January 16, 2023
Categories: General
You’ve been building your business for a while and you’ve had some success. Now it’s time to take your finances to the next level.
No one starts a business thinking “I’m going to work extremely hard so I can make just enough to scrape by” or “I want to work so hard on this one thing and ignore all the other things I’m passionate about.”
The business owners who have made more money and aren’t defined by their first business utilized a few things to get themselves past the obstacles that would keep them stuck running one business.
Saving Money
Everything starts by saving enough money to get started. Saving money is not about stock-piling money in an account you’ll never use. It’s about setting aside the money you need to accomplish a bigger goal. One of the benefits of saving money is the ability you will develop to find money you can set aside.
Once you have the ability to find money to save, you can set yourself up to invest in new opportunities.
Investing Money
Small business owners tend to get stuck in the cycle of making just enough to keep their business running and never grow outside of it. If you want to grow your money outside of your business you need a strategy.
You can start fixing the problem by asking yourself a couple questions: Where do you keep your money? And how do you grow that money?
The stock market is volatile, but if you are wise in your investments you can grow your money over the long term.
Real Estate is a modern solution to growing your money. However, you should be careful to not invest in real estate in the wrong markets or at the wrong time.
Starting a secondary business is another way to continue growing your money but you will need to be careful to not have a business too different from your other businesses as you may find yourself pulled in different directions mentally, emotionally, and socially.
Long Term Planning
Many first time investors start by making short term investments that they turn into cash and spend right away. That method will backfire quickly as short term investments are taxed more heavily. They don’t have long term plans to guide their decisions in purchasing and selling their stocks.
They also don’t tend to have other business ideas they can build on. If they did they could avoid the stress that comes from short term and short sighted investing.
How to Get Started
Growing your money inside and outside your business takes knowledge and effort. For investments and planning, you should speak to a financial advisor. But if you’re looking for ways to save money so you can invest, your bookkeeper can help you find ways to save without hurting your business.
If you have any questions about what that would look like for you, let me know. I would be happy to speak with you.
