Starting a business can be exciting. You have a particular set of skills to share with the world. However, you wear all of the hats in your business and it can be time-consuming to get up to speed on everything, especially finance.
As a business advisor, I have seen entrepreneurs, side hustlers, solopreneurs, and start-ups get hung up on the numbers. Yes, there is a lot that goes into understanding the financing of your business. The first seven years of my career I spent in financial services and numbers can be mind-numbing.
In this post, I walk you through five financial basics that every entrepreneur and side hustler should know. Don’t worry, I’m keeping it real simple for now to give you a sense of what systems you should set up to track your finances.
It doesn’t need to be hard. And in fact, it can be sort of fun. (Okay maybe not fun, but definitely satisfying).
The video explains each of these basics more and I name some tools that you may find helpful in automating your finance processes. Here you go:
- Create a budget
- Set goals and write them down
- Track money in and money out
- Organize your paperwork (e.g. receipts) and close out every month
- Understand foundation financial statements
Listen, I hear you. Getting a hold of finances can be crazy, especially if you’re ramping up manufacturing. But let’s start here. By understanding the foundations of finance you will be ready to move into modeling and forecasting soon.
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