Embarking on the entrepreneurial journey is akin to setting out on an uncharted adventure. It’s filled with unknowns, challenges, and the occasional surprise twist. While physical fitness often gets the spotlight with its glossy gym selfies and trendy workout regimes, there’s a quieter, more calculated player in the game of success: financial fitness. We aren’t talking about putting your money on a treadmill, of course (that would be weird). Financial fitness is about smartly navigating the financial hurdles of running a business.
The first financial decision most entrepreneurs make is how to fund their business, and quite often they do it all wrong by using personal savings or credit cards improperly. If you use personal savings and don’t document the funding of your business properly, you could lose valuable tax benefits. And, if you use your personal credit cards to fund your business, you could hurt your credit score before accessing the vast amount of credit resources available to you through your business.
Before deciding how you’ll fund your business, educate yourself on what types of resources are available, how they can best be utilized, and how they can help you build a solid financial foundation from the start. Consult with advisors and mentors. Read books, listen to podcasts, purchase an online course. Whatever you need to do to increase your knowledge is a worthwhile investment in your future. If you’d like our help here, give us a call – we’ve got access to funding options you may not be aware of, and we can help you set up your business to maximize your tax savings as well.
So many entrepreneurs lack financial clarity when starting out. They’re excited about their ideas and ready to turn them into reality. But not moving forward with clarity is a mistake. Those without clarity also have no plan at all, and end up bootstrapping their business, or using their own money. They may use personal savings, the support of friends and family, or initial sales to build their business. If that’s right for you, great. Just make sure you’re doing so with your eyes wide open, understanding the limitations and opportunities.
If, on the other hand, you’ve educated yourself and decide to raise capital (or, use other people’s money). be sure to work with an expert who can guide you through what could be a complicated process. You don’t want to do this yourself. Also know exactly what you intend to build and by when.
Whatever decisions you make, do so deliberately. You need clarity from the outset. Be aware of your starting point, have a vision for what you’re building, and make intentional choices to turn that vision into reality.
Routine might sound mundane, especially to visionary business owners, but in the realm of financial fitness, it’s the foundation upon which long-term success is built. A structured approach to managing finances ensures that every dollar is accounted for, opportunities for savings are maximized, and potential financial pitfalls are identified early.
What should your financial routine look like? Here’s an example:
It may not seem to relate, but keeping up your physical fitness greatly contributes to the financial fitness of your business. The interplay between physical and financial health is more profound than it appears, and if you ask the most successful entrepreneurs, many will tell you that they have a self-care routine that includes physical activity. It makes sense. A healthy body fosters a sharp mind, enhancing creativity, decision-making, and resilience—all critical traits for navigating the ups and downs of entrepreneurship. Making time for physical activity is not just about personal health; it’s about embodying the strength and endurance your business needs from you.
Achieving financial fitness as an entrepreneur requires more than just hard work and persistence. It demands a balanced approach, integrating careful planning, continuous learning, flexibility, and routine. It’s about viewing each challenge not as a barrier but as an opportunity to grow and refine your business model. With a clear vision and a steadfast commitment to both your financial health, the path to success becomes not just attainable, but enjoyable.
As a LIFTed Business Advisor, we’re here to serve as your trusted guide, helping you increase your financial fitness with a clear and balanced plan that serves the company’s best interests. Together, we’ll create that road map for you, so you’re able to go about the work of growing your business with confidence.