Not knowing where your next revenue opportunity, client payment, or customer purchase is coming from is very frustrating to most Entrepreneurs. Many people got out of the workforce to start entrepreneurship. But some may have not done the proper research to know and understand that the cash flow doesn’t come in as quickly or as routinely as we need it at times. Not knowing how you are going to pay bills or even if the client is going to pay the invoice, can be disheartening to your love of entrepreneurship.
Here are a few things you can do to hold you over until the next cash infusion:
- Start a business savings plan. Having a business savings plan in place before you start a business and throughout the course of doing business can be vital. Even if you are not saving a lot, having some amount of savings can be helpful. The goal would be for you to have savings to cover your business and personal expenses for at least six months; especially if you do not have another source of income. Start small, then work your way up. If a big pay day comes in, put as much as you can in your savings for a rainy day. Do not use the money unless you do not have a choice. People don’t want to save, but they should. No Entrepreneur knows when they will need money to take the place of sales that didn’t happen.
- See what you do not need. Take a look at everything money is being spent on every month. Assess the expenses for what is not needed. Some things you are spending money on you may not need just yet, need the entire package, or at all. Go through and evaluate what is mandatory for you to have as an expense. Doing this simple assessment of your expenses can create instant money to be deferred to other places of need for your business.
- Pay attention. Do not go spending all of your money “willy nilly”. When the windfalls of money are coming in, most Entrepreneurs tend to not pay attention on frivolous purchase or think of preparing for the slow seasons of business. Don’t celebrate too much by spending the money when it feels plentiful. Instead, pay attention to the rhythm and patterns of your business: the money, clients, and customers. Creating a budget based on these ebbs and flows will help you have a healthy plan of balance to adjust spending according ahead of time to match the flow of money and the business.
These are tips are simple but very important when balancing entrepreneurship and money. Take a hard look and start now so that you will not be sorry and broke later.