When Personal Finances Meet Business Finances
20.3.08
By Eric Gard
When starting a business one of the biggest things you must make sure you have control over and have a plan for is your finances. Do you make a budget with your personal finances and stick to it? If not, you should. Have you created a financial plan for your personal finances as well as your business finances?
It only takes a small leak to sink a great ship. Your business is like a great ship you have crafted and it will sail you to the ends of the world if properly constructed and well maintained. Even a small flaw such as going over budget or not setting a plan and sticking to it can lead to financial disaster.
If you are not able to keep a budget and stick to it and layout a financial plan and stick to it as well, how do you think you will do while running a business? The point here is not to discourage you from following your dreams; however you must understand that if you have a problem managing your own finances you will probably run into the same sort of problems down the road with your business.
If you have problems with your own finances, that is ok, you just need to realize the importance of figuring out what those problems are and find a way to solve them. There are many articles and books on the subject of money management and budgeting. The first step towards recovery is realizing and accepting that there is a problem. When you realize there is a problem you can seek out ways to solve it.
So start now, don't wait. Sit down tonight and make a list of your personal finances then figure out exactly how much money to spend and how much money to save, then stick to it and improve where you see fit.
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