This week we’re featuring guest blog posts from the Collaborich Conference, taking place September 30 to October 2, 2015. This is the fifth post in the “Financially Free Entrepreneur” series.
Today we are covering real and tangible tools for managing your money. Obviously Wave is super handy, but what else do you need in your arsenal to manage your mindset and wallet? We went ahead and asked our #collaborich speakers what super successful online entrepreneurs do. Here’s what they said were their top 3 tips to managing the dosh.
—Stephanie, a.k.a. The Millionista Mentor, founder of The Collaborich Conference.
1. Create a budget. I see so many entrepreneurs (and non-entrepreneurs) mismanaging their money because they don’t keep track of it. They don’t know where it’s going or how much they’ve really spent. This is dangerous. Create a budget/plan for your life and business finances and pay attention to it.
2. Automate your finances wherever possible. If you can automate your invoicing, your bill payments, your retirement, even your saving, then you’re going to set yourself up for financial success, and you’ll save tons of time doing it.
3. Know your numbers. You need to know how much you’re making, how much you’re spending, how much you want to make, how much you need to invest, how much conversions cost, retention costs, and so on if you want to create real success. Keep track of these things so that you know how to plan, what your profit/loss numbers, and where to get the most bang for your buck each month/quarter/year!
—Adrienne Dorison, Success Strategist & Money Mentor
1. Hire an accountant or bookkeeper. This can be a tough investment for a new entrepreneur, but it's worth every penny and then some. We enter the small business arena because we feel we are an expert at something and we want our clients to choose an expert when they head down a certain path — us! We have to practice what we preach and acknowledge that we may not be experts in some areas of our business and we need to delegate those critical areas to an expert for our own protection. Unless you have an incredible background in finance and taxes, hire someone who excels in this environment.
2. Avoid debt. All businesses require some investment and start up cash, but do your best to not overspend. It can be exciting to get started as a small business owner and you want everything, now. Set a timeline for your purchases, try to avoid constantly spending more than you are making. The more aggressive you are about avoiding debt in the short term, the more successful and profitable you will be in the long term. Be reasonable, let your business live within its means, and allow your quality of business "living" to grow along with your income just like you would with a home budget.
3. Stay organized. There are far too many tools and resources available to us today to be poorly organized in business, especially when it comes to money. Do your accountant a favor and keep detailed records of your purchases, payments received, bills, etc. Stay aware when it comes to your business' financial position and don't just roll with the day-to-day and assume/hope everything is working itself out on the back end. Keep files organized and well-labeled, hard files and online files. You should know every in and out of your business. If it's not in your head, you should know exactly where you stored the information for easy access.
—Katy Blevins, The Modern Femme Movement
1. Set aside a time each week (a money date with yourself - make it fun!) to manage your money and project it out. Knowledge is power.
2. Put aside an amount either weekly or monthly to start to save. This does not have to be a big amount, you can start with $5.00 a month. This helps you to create a habit of starting to save money.
3. Start to track your money consistently — what is coming in and what is coming out. —Kelly Lynn Adams, Business & Life Coach
1. Never rely on money until it's in your bank.
2. Understand the financial seasons of your business, the ebb and flow of cash, and plan accordingly.
3. Hire a financial expert to help you.
—Stephanie Melish, Sales Strategist
1. Know your numbers. I know it's kind of a "duh" tip, but you'd be surprised how many webpreneurs don't know their numbers.
You have to be clear on how much you make, how much you spend and what you're taking home so there are no misconceptions around where you stand.
2. Get a bookkeeper if you can afford it.
There are so many better ways to spend your time each month! Having a bookkeepers makes tax time sooooo much less stressful!
3. Get yourself a money app so you can log your expenses, your receipts and see what your financial situation looks like at any given moment.
There's nothing better than having your finger on the pulse and knowing where you stand!
—Jill Stanton, co-founder of Screw the Nine to Five
1. Record the specific amount of money required for desired purchases.
2. Track your expenses.
3. Hire an expert financial advisor.
—Juliet Turlaski, Personal Development Thought Leader
1. Be firm with your money goals. It’s important for you to have clarity around how much you want to earn. Having clarity will give you the confidence to charge your worth and make the money that you desire.
2. Use the proper systems to manage your money — to receive funds, to help manage your expenses and more.
3. Your mindset is important. You have to work on having a positive relationship with money. This is so important, once you understand how money plays a roll in your life and business it will serve you better. You will be able to earn more money easily, invest in your business freely and spend your money wisely.
—Fabiola Giordani, Branding Consultant
1. Establish a system and process to keep track of all of your sales, expenses and taxes. If you are incorporated, make sure to use an accountant (you will save in the long-term).
2. Create a money plan for your business. This should include knowing where you stand at any point and time and where your sales are going when they come in. This plan should include re-investment budget, how much you pay yourself, and a contingency bucket.
3. Keep separate cards and bank account.
—Nathalie Guerin, Law of Attraction Specialist
1. Seek professional help! I would highly recommend having a team around you that specializes in helping you track and retain your money. From the very beginning I have always had a bookkeeper and accountant on my team.
2. Use systems that will help you track your income and expenses. There is nothing worse than not knowing what is coming in and out of your business.
3. I would highly recommend having a separate bank account for your business. Too many times I see people mixing their personal and business expenses together. For simplicity’s sake, just open up a separate account so that you are able to track all your business transactions easily.
—Maria Hinton, Prosperity Coach
“Know your budget first and foremost. It is not cheap to start and maintain a profitable and successful business. If you have to borrow funds, get a loan or maintain a bridge job to fund your business in the beginning stages, then do that. Know how much you really need to make each month- for personal, savings, taxes and what you intend to put back into your business. Next, you want to make sure that you are actually profiting and paying yourself. While a good chunk of my earnings went back into my business, to make it better, for consulting and hiring independent contractors, I still always paid myself. Decide on a percentage that you will pay yourself out of each transaction or payment and stick to it. Finally, because this becomes difficult and overwhelming, especially as you start to grow — consider hiring a bookkeeping to make sure your records are managed correctly and you know your exact profit and loss. This will also greatly help when tax time comes.”
—Jenn Scalia, Business Coach/Consultant
The tips are like money in the bank. Want more? Join the free conference and watch live as our speakers share their best money making secrets, offer giveways and answer your questions. Grab your seat here www.collaborichconference.com