Here you can also see parts I and II.
In this last installment I will talk about a subject that few people dare to face with total honesty. One of those issues that entrepreneurs especially tend to avoid a bit but that sooner or later becomes present in their businesses.
And it is precisely the financial issue. A critical issue in the operation of a company and that can guide you to success or lead to imminent failure.
Don’t Start A Business If You Don’t Have Good Financial Habits
This may sound very harsh. And indeed it is. But it is one of those truths that nobody tells you and one of those topics many times we prefer to omit because finally the objective of To start a business it is precisely an improvement in finances.
And that is usually precisely the problem. Assume that the fact start a company or a business it will automatically represent you more income. Which is very far from reality. Because, let’s face it. A company generates income, only if the universal principles of money management are respected.
What are those principles? Simple. Don’t spend more than you earn. Don’t make expenses lightly. Have a budget, etc. You can see this article here that will help you delve into the topic of taking care of your finances.
But the important thing you should know in light of this issue is that the worst mistake that many entrepreneurs make is precisely sitting in the chair of directors of their business, in charge of managing money when their personal finances are in total chaos.
And the question I always ask them is: How do you expect your business to be financially orderly and successful, if your finances are in disarray?
How do you intend to make a profit if your credit cards are full of debt? How do you expect an organization to grow and develop if you have your suppliers chasing you to pay?
Doesn’t that sound a bit contradictory to you? Indeed, it is.
So the best advice I can give you in this post is the following. DO NOT start a business, if you do not have a responsible person in charge of the money. You wouldn’t jump into the void without a parachute, right? So why start a business venture in a totally adverse and doomed context?
So regardless of the size of your business, make sure that finances are in control of someone who knows how to take good care of them. That you keep and respect a budget and that you take care of your assets in the most efficient way. And if that person is you, what better and then I must congratulate you.
I clarify that having debt or financial problems is not a limitation for start a companyOn the contrary, that will be your best motivation. However, make sure you don’t open one hole to pretend to escape another.
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