Only two-thirds of businesses stay in business two years, and only half of small businesses will make it to the five year mark. This can happen even when a business appears to be doing well, if the owner isn't taking a hard, realistic look at their finances and planning accordingly. When margins are slim, it can only take one unexpected expense—or an unfortunate series of small expenses—to derail a business's bank account.
There may not be a foolproof formula for success, but knowing how to manage your money well is definitely an ingredient.
You have to get comfortable with those numbers if you want to survive and thrive in running your small business.
Maybe you think you're not great with numbers, or you're not sure where to begin when it comes to financial planning for your small business, but the last thing you want to do is avoid dealing with your bottom line.
The good news is, you don't have to be an accounting expert to have the financial skills necessary to maintain a profitable business! This week on the Businessese Influencer Marketing Podcast, business finance coach Sylvia Inks unlocks the mystery around budgeting and other financial considerations for the self employed. During her ten years with one of the world's largest consulting firms, Sylvia worked with Fortune 500 organizations in financial services, insurance, healthcare and technology to improve processes, performance and profitability. Now through her own business, SMI Financial Coaching, she acts as a step-by-step guide to learning the business and financial skills entrepreneurs need for success, so they have the money and time to so what they want, when they want to do it.
In this episode, Sylvia discusses:
- business expenses many entrepreneurs overlook
- forming a financial plan when transitioning from a full-time job to running your own business
- how financial planning for your business differs from planning for your personal life
- how much business owners should have saved in case of emergency or to make it through a lean season
- when it makes sense to take on debt when starting your business
- helpful financial planning tools for small business owners
What are your questions about financial planning for your small business? Let us know in Businessese HQ.
Sylvia's websites: SMI Financial Coaching and Small Business Finance Book
SMI Financial Coaching on Facebook and LinkedIn
Sylvia's book: Small Business Finance for the Busy Entrepreneur: Blueprint for Building a Solid, Profitable Business
The Four Tendencies: The Indispensable Personality Profiles That Reveal How to Make Your Life Better (and Other People's Lives Better, Too) by Gretchen Rubin
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