You probably started your business based on a desire to pursue your passion, not thinking about the money and finances that go into being an entrepreneur.
Isaiah Goodman of Becoming Financial joins us to discuss how you can resolve debt in your business and build credit. Whether you’re just starting out, or you’re trying to correct past money mistakes, he’s bringing the truth to the conversation to help you understand and manage your money.
Focusing on the Process
It’s important to truly understand your financial situation before approaching or resolving your debts and credit. Isaiah’s approach highlights key components of understanding you and why you started your business. Ask yourself:
What’s important to you about money?
.. what’s important about that?
….what’s important about that?
……and so on…
When you think about your why and dig deep into understanding it, you’ll see a direct correlation to your business.
What’s Your Personal Budget?
As a business owner, it’s your responsibility to take care of your #1 employee—that’s you. Taking your personal budget into consideration shows the minimum that your business will need to make in order to stay afloat.
What’s your Business Budget?
When entrepreneurs get started in their business, they’re not thinking far beyond cash flow. It’s important to consider how much you want to profit at year end in order to be a profitable business.
When you’re not putting your profit first in your business budget, you begin to spend more money than you’re bringing in, setting you up for failure.
Mistakes Entrepreneurs Make With Money
Mistake #1: Feel the need to access large sums of cash without thinking about the tax consequences.
Ex: Cashing out your 401k without considering the income tax + 10% tax penalty you’ll have to pay on it.
Mistake #2: Putting too much on their personal credit without considering the business options.
Repairing Money Mistakes
If you’re a business that has been around for a while, it’s important to seek advise from a professional. Invest in an accounting software or a tax professional who can help you manage your money and come back from your financial mistakes.
If you invested your personal money into your business, you can show that it was invested into the business and the business paid them back. It’s all in how well you’ve documented your accounting.
Finding Contentment with Money
When you’re content with how much you’re making in your business that supports your personal goals, you’re set.
CATCH THE SHOW NOTE BREAKDOWN
5:29 – Isaiah’s Process with Clients
8:50 – Mistakes entrepreneurs make with debt and credit
14:18 – How to Repair Money Mistakes
22:14 – Recurring Tasks/Workflows to Build Consistency with Finances
25:22 – Tools for Finances
32:39 – Encouragement for Profit Based Freedom
37:16 – Flex Flow Budgeting Spreadsheet
LIKE THE SHOW?
IN ORDER TO PROVIDE CONTENT YOU LOVE I WANT TO HEAR FROM YOU! SUBSCRIBE TO THE BRAND STRATEGY PODCAST AND LEAVE A 5-STAR REVIEW HERE. THE MORE REVIEWS, THE MORE I’M ABLE TO PROVIDE THIS FREE-ACTIONABLE CONTENT!