Implementing These 2 Strategies Can Help Entrepreneurs Reduce Financial Stress
Finances don't have to be a constant source of stress on your entrepreneurial journey.
By Beau Henderson •
Opinions expressed by Entrepreneur contributors are their own.
When you think about the sheer number of components it takes to build a business, your mind starts to race. There are the structural elements, such as the type of business, products and services, the marketing, client fulfillment and more.
As an entrepreneur, your focus might tend to be on what you need the most right now. An informal poll of entrepreneurs would probably point toward a discussion of prospecting and closing new business. It would center around getting more sales and the filling of pipelines.
While the here-and-now are essential, successful entrepreneurs think strategically. They focus on long-term moves they can make, because they understand that's the most powerful way to scale a business.
Related: 5 Personal-Finance Habits of Wealthy Entrepreneurs
Improve your relationship with money.
Too many of us start our adult life having to figure it out when it comes to money and wealth creation. The beginning years of adulthood tend to leave marks, and we carry those into entrepreneurship. This can mean pricing what we offer lower than the value we provide. It often manifests in taking on clients that an entrepreneur knows will not be a good fit, or failing to think about money as something that provides freedom.
Finances don't have to be a constant source of stress if you understand their purpose. You don't have to compromise on what you offer for consumers that aren't your ideal client. The stats tell us that there were 4.3 billion internet users, 5.1 billion mobile users, 3.4 billion social media users daily, according to We Are Social. That means we don't lack opportunities to get new clients and build our business in this hyper-connected digital information age. The issue becomes how you show your ideal target client that you can help them.
Working on and creating a healthier relationship with money will reduce stress, beat fear and allow your mind to focus on what will bring in more revenue. Some things you can do are:
- Educate yourself about finances through books, courses, videos and other forms of available content.
- Hire professionals who can help you organize your finances right now and plan for the future.
Related: 5 Personal-Finance Mistakes That Kill Promising Companies
2. Plan for more than right now.
Many entrepreneurs choose this lifestyle because we would do what we love, even if it were for free. That is great, but it also sets us up to work in our business and not run it as a CEO. It creates a familiar situation where entrepreneurs aren't planning for the future.
You may want to work until your body and mind can no longer handle it, but you should have a financial plan in place that takes care of you and your family, whether or not you're running your business.
Financial planning for retirement is not a popular topic with entrepreneurs, but it's one that needs to be addressed. Building a legacy is about more than accolades — it's creating financial security through a business that aligns with your values.
Successful entrepreneurs plan strategically. Part of that planning includes setting aside money for emergencies, and using funds to build the kind of wealth that allows an entrepreneur to retire in comfort. This includes investments, assets, savings, and other financial management strategies.
You don't have to go through life feeling stressed, worried or unsure of finances and their impact on your business. You can create wealth that allows you the freedom to work, whether you want to or now.
This starts with acknowledging your current beliefs around money and doing the work to make any necessary changes. We live in the information age, which means many solid resources that can bring clarity, help you plan and beat any fear.
Plan for all possibilities and take control of your financial future.
