Learning Resources: How to Manager Your Money
A successful business begins with managing your money.
- A business makes you money.
- A hobby costs you money.
In Business You Must Manage Your Money
Most entrepreneurs think they are financially illiterate. Unfortunately, a primary reason for going out of business involves the mismanagement of cash and the inability to pay bills.
First, if you are not financially illiterate, now is the time to learn. There are a number of classes you can take.
Check out the following:
- Udemy courses on Small Business Finance
- Community College Courses on Small Business Finance
- Courses offered on LinkedIn and at other educational institutions.
If you are in debt, consider using your early CFO earnings to alleviate your debt.
- Create a spreadsheet that lists all of your debt.
- Set up a plan to pay off the debt as you start to sell your food products.
- Once your debt is paid, and you have customers and brand ambassadors, think about what it might take to save and scale your business.
Here are a few steps you can take right now to get your business finances in order.
- Open a separate bank account
- Keep track of your business income and expenses separately from your personal transactions
- Make a budget for your business
- Take a class, get training so you understand how to manage your business finances.
- Save 25-30%% of your profit for taxes (depending on where you live in the U.S.)
Many business owners are surprised when April rolls around and they get a huge bill from the IRS. You’re going to owe taxes, so be sure to prepare for it!
I also recommend working with a tax professional to make extra sure you’ve got your bases covered.
You may also want to use:
- Quickbooks,[https://quickbooks.intuit.com/] or some other payroll program
If you have any questions please share them with me.