Owning a small business carries a ton of responsibility along with it. You are responsible for all of the coming and going of your business, while simultaneously managing your personal life. It can be a bit overwhelming, but awareness can combat stress.
Invest in yourself, and learn how to properly manage your personal finances while keeping your business running smoothly as well. Here are a few personal finance tips for small business owners looking to be the master of their own financial destiny.
Keep your personal finances separate
As a small business owner, you should never allow yourself to mix business finances with your personal finances. The two should always be kept separate. Obtain a separate business account to use for any miscellaneous business expenses.
Mixing business finances with your personal income will cause a real mess when tax time arrives. Mixing business and personal income could also inevitably end up impacting your personal finances in a very negative way.
Work to build your small business
Be an active contributor to the success of your small business operation. You can’t simply sit back and watch. Get your hands dirty, and put in some extra work to fine-tune the bells and whistles of your operation.
If you’re still in the beginning stages of building your small empire, start by actively establishing a web presence. You can start a business blog (like this example post featuring oil pumping supplies), and use the well-crafted posts to draw interest to your business website.
Actively save for your retirement
As a small business owner, you are your retirement plan. You may not be able to rely on your business operation to carry you financially for the rest of your life, so you have to take matters into your own hands.
Actively save for your retirement, so you don’t find yourself old and in the cold. Start by investing in a solo 401k, and seek out other opportunities from there.
Invest in the proper insurance coverage
A wise business owner has several different insurance policies to cover an array of possible situations. Safeguarding your stability is vital for your long term success in both the personal and business realms of your life.
Make sure you have an active personal life and disability insurance policy. If something happens to your body or your source of income, your insurance will keep you afloat.
Structure your business for personal protection
Early on in the creation of your business, you’ll want to be thinking about your personal protection. The structure of your business can determine the impact of potential failure on your personal finances.
Structuring your business as an LLC (or limited liability company) will see to it that your personal finances are legally separated from any financial workings of the business.