Sunday, May 26, 2013

10 Financial Tips for Startup Entrepreneurs

If you are young entrepreneur or startup, I applaud you. Building a company is truly one of the hardest things I’ve ever tried to do. A year and a half ago, I decided to quit my job to pursue my dreams of entrepreneurship and have learned a lot of lessons along the way. In this article, I’m going to share some of the financial lessons I’ve learned in the process of starting my business in the hopes that you won’t repeat some of the common financial mistakes many young entrepreneurs make.

#1: Time is Money

When I first started building my business, I spent a lot of time traveling to meetings, meeting with people, planning for meetings, etc. Today, I wish I had all that time back. One of the most valuable assets entrepreneurs have is their time, and every moment you spend doing stuff that is unrelated to your business is time and money wasted. When I was first starting out, I recall one of my advisors saying to me, “a lack of time is a lack of priorities.” It’s true. If you are wasting your time going to meaningless meetings that are unrelated to your business, you can find yourself in a tough financial situation.

#2: Prepare for the Worst, Hope for the Best

Bad things happen to good people, and it pays to be prepared. If you are not financially prepared to take the leap into entrepreneurship, don’t quit your job until you are ready. There is no reason in the world to give up your income when you can work on your project on the side until you have traction. For most single people, I recommend having at least 3 months of living expenses in an emergency savings account. If you are going to be an entrepreneur,