You could run into some big trouble pretty quickly if you aren’t 100% sure where your money is going each month or if you invest in something/someone that is not a sure thing.
New York, NY (PRWEB) June 03, 2013
FinanceSpectrum.com financial advice website today released their tips to entrepreneurs for how to be successful in their money management, and in turn, their business endeavors.
FinanceSpectrum.com was inspired to address money management advice with entrepreneurs after reading a recent article by David Mielach of Fox Business, published May 30th 2013. Mielach points out that it takes more than just a great idea to run with in order for a business to be successful. He employs the help of Tope Ganiyah Fajingbesi, the author of “What Color is Your Money? Your Personalized Roadmap to Business Success” to dole out some financial tips specifically for entrepreneurs. Fajingbesi recommends that entrepreneurs establish some ground rules for managing the financial end of their new business, such as setting clear and measurable financial goals and always paying oneself first.
While FinanceSpectrum.com enjoyed the article and believes it to offer valuable advice, the online financial column stated that it left out a few very important suggestions: track spending diligently, keep a strict budget, and don’t take on too big a risk too early on. FinanceSpectrum.com is quoted as saying, “You could run into some big trouble pretty quickly if you aren’t 100% sure where your money is going each month or if you invest in something/someone that is not a sure thing." Finance Spectrum gave a few examples of how businesses could make financial errors if they didn’t do their financial analysis properly, "With no medical exam life insurance companies might have great difficulty knowing whether or not they made the right decision to insure a person. The insurance company might be paying out on that policy quicker than they had hoped for. Another example would be a new car rental company that sets up shop and orders a large inventory of cars without first seeing what sort of demand they’d have in the area they set up in. Ordering 50 cars and then only being able to rent out 10 is taking on too big of a financial risk. If you commit to something, or the possibility of something, make sure you have the financial resources to back it up, especially if you are a new company without a lot of financial capital.” They also advised entrepreneurs to keep their fixed expenses as low as possible, especially in the beginning.
FinanceSpectrum.com is quoted as saying, “When you’re just starting out a business, it makes sense to want a nice office space, in the city, with a view, to show clients and customers how impressive and professional you are. But let me tell you something, money is going to go down the drain real fast if you have zero customers to show the space to in the first few months while you’re still paying this huge overhead in rent, electric, and for your two paid interns. Working out of a home office saves on overhead—not to mention gas. Come up with some other creative ways to do things so that your fixed expenses are not through the roof.”
Another tip that FinanceSpectrum.com put out was recommending that entrepreneurs keep in mind that their time is their money, and should not be wasted. FinaceSpectrum.com stated, “It’s important to be spending your time wisely, and not wasting it on activities that are not directly in line with getting you and your business toward the goals. Your time is very valuable, and must be treated as such. Think of your time as money, and allocate it in the same way.”
FinanceSpectrum.com is a finance and economic online column aimed at guiding middle-aged Americans in their everyday personal and professional finances. FinanceSpectrum.com prides itself on keeping up with economic current events, as well as providing the best information on investing, budgeting, and managing debt.