Things I Wish I Knew About Finances as a New Entrepreneur

By: Leanne Grechulk, Founder of HealthyGirl
healthygirl.net
thirtydaystowealth.com

As I begin my third year of entrepreneurship, I reflect back to so many lessons in money and finance that I have experienced over the past few years. I actually thought I knew a thing or two about managing money. After all, I had owned homes, completed an MBA and managed sales teams for some of North America’s most profitable companies. Today, I can honestly say that the best training on managing money is to become an entrepreneur. When you are responsible for generating your own income, you quickly realize that your first priority is to become an excellent money manager. Sounds simple enough but it doesn’t happen overnight. It took me about 2 years to acquire the knowledge and experience to really get a handle on my finances and once I did, profits begin to rise! For my fellow entrepreneurs, here are my top 10 ‘things I wish I knew’ about finances and money when I first started my business:

  1. Read Think and Grow Rich by Napolean Hill
  2. Hire a great bookkeeper (before you need one so you are in great shape from day 1.)
  3. Educate yourself on the great tax benefits of a home–based business
  4. Profits are better than wages
  5. Keep your personal and business expenses separate from day 1
  6. Find a millionaire mentor
  7. Learn the difference between linear and residual income
  8. Cash Flow is the secret. Without cash, you won’t get very far and you’ll rely on debt
  9. Set annual, monthly and weekly financial goals. I set an income goal weekly.
  10. Love Leverage. Learn to leverage money and people. Work smarter not harder.

A few other tips I have is to learn to add multiple streams of income to your business. Some ideas that are helpful in generating cash flow and sharing your expertise include writing e–books, speaking at events and leading a seminar series. There is great wealth in knowledge and if you have acquired skills that other people can benefit from, it’s a win win situation. Enjoy the journey but remember that you are of no value to anyone if you don’t get yourself into great financial health to begin with.

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