We all know that cashflow is the lifeblood of a business. As long as cashflow…
Becoming the CEO of Your ‘Personal Finance’ Business
As a Small Business owner, life can be very busy. You get pulled from one urgent and important task to another.
You never seem to have enough time for your business let alone to think about your personal financial situation or to create a wealth plan. Well, it’s time to step up. Time to step up and become the Chief Executive Officer (CEO) of your ‘personal finance’ business.
Let’s see how you can become the CEO of this crazy, busy ‘personal finance’ business. Let’s go back in time, back to when you first started your business. I’m sure it was a scary but thrilling time. The day arrived: you opened your doors to the world. Things were tough in the first few months. You had a few wins, made some good sales, got hit with a nasty tax bill but you managed to get by.
Now, after a few years, you are happy with your decision to strike it out on your own. The problem is, you’re starting to look around at your friends, even your customers, and notice certain things. They seem to be driving nice cars. You hear about their great holidays they are taking. Everyone seems to be buying an investment property.
You think to yourself, hang on, what’s going on here? I’m the one with the successful business. Why aren’t I enjoying these things? You feel like you are putting everyone else’s needs before your own. Sound familiar?
I’m telling you to stop this. It’s your life, your dreams. You are the CEO of your ‘personal finance’ business. It’s time to step up. Once you realise that you are the CEO of your own ‘personal finance’ business, you have the power to address the mistakes that most Small Business owners make with their personal financial affairs.
I regularly see three problems Small Business owners have that stops them creating financial freedom using their business. These are:
- Not creating a solid financial foundation to commence the financial freedom journey.
- Not having a plan to use profits to invest, create wealth and forecast financial freedom; forecasting their future if you will.
- Not having a clear exit plan to maximise the sale of the business to deliver financial freedom.
By starting to see yourself as the CEO of your ‘personal financial’ business, you can address these issues. Let’s take a look at these:
1. Not creating a solid financial foundation to commence the financial freedom journey.
To commence the financial freedom journey, you need to create a solid financial foundation. Small Business owners often blend business cash flow with personal cash flow. Money is often transferred from one account to another account to cover shortfalls. Because of this, you may not even know how much you need to live on personally every month.
This is not the life of someone who is the CEO of their personal financial business.
2. Not having a plan to use profits to invest, create wealth and forecast financial freedom
Your business is making good profits, but you never seem to take these profits out of the business. You keep reinvesting back into the business. It’s time to stop letting your business run you and to stop being too proud to take money out of the business.
You are the CEO of your ‘personal financial’ business. Ensure that profits are taken, then seek out advice about where to invest them.
3. Not having a clear exit plan to maximise the sale of your business to deliver financial freedom.
At some stage, most owners will sell their business. You might want to keep involved in the industry or operations. You even heard how another business owner sold their business and now owns the building the premises the business was operating from.
As the CEO of your ‘personal finance’ business, it’s your job to create a plan, communicate this plan to all involved in your personal life and execute the plan. I get it, it’s not easy and requires patience and hard work. You need a roadmap and willingness to make some changes in your business. But the rewards are worth it.
Now that you are thinking like the CEO of your ‘personal finance business these decisions become clear. Go out there and implement.
“The opinions expressed by Smallville Contributors are their own, not those of www.smallville.com.au"
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