Being a small business owner can give you a lot of choices with your schedule and focus. You can also end up working 24 hours a day if you’re not careful. To make the best investment in your business and personal life, you may need to change up your choices.
If you love a field enough to start a business, there will be projects you love, projects you need to do, and projects you dread until they’re critical. Hire someone to do the dreaded projects. If spending time working on accounts receivable and accounts payable will burn your creative juices quickly, bring in someone part-time to keep you caught up. Hire a part-time bookkeeper and bring in a controller once a year to clean up before tax season. Look for an entrepreneurial bookkeeper who’s also working for themselves. Learn how to invest in your people so you have time to work on your business instead of in your business.
No matter your passion, make sure you continue to study up on world events. If your business needs raw materials or component parts from the global supply chain, you need to know what’s going on in the halls of power of the nations where your products are made. It only takes one serious supply chain challenge to limit your business, disrupting your ability to deliver and impacting your good name.
If you can prepare for disruptions, you’ll lower your stress level and reduce the risk that your business will be the one with nothing to ship as events unfold. Build relationships with suppliers that have this flexibility, and be ready to order from a variety of manufacturers.
Monitor Your Online Presence
You’ll also need to monitor your own reviews and online presence. If someone doesn’t like your products, find out what failed and make things right to the best of your ability. One dissatisfied customer can have a long reach.
Once you have happy customers, make sure that you do your best to keep them coming back. Ask them for online reviews to spread the good news about your offerings. No matter the quality of your reviews, eventually hiring a social media manager can be a great investment.
Make Your Money Earn Money Easily
Set up an automatic deduction into a stock investment account. This will save you hassles and worry on several fronts. First, the deduction is automatic; the money just goes. Secondly, the investment can be automatic. Set your parameters based on your risk tolerance and ignore the account. Finally, your money can be reinvested automatically.
If you’re making enough to
invest in your retirement
invest in the stock market
invest in your business, and
you’re doing pretty well. The study of stocks can take a lifetime, and even professionals can drop the ball. Unless you really want to know about international investing, FOREX, small-cap stacks, iron condors, and the many other terms involved in the stock market, automatic investments may be the way to go.
Learn About Retirement Accounts
If you have a small business, you may spend a lot of your early years dumping all your money and time into building the business into a profitable venture. Once you start to see enough income that taxes are due, it’s time to think about a retirement account.
An individual retirement account or IRA can come in a variety of formats. A traditional IRA can save you tax dollars now; the money you put into it today will be deducted from your gross income this year. Any dollars you make on it will be taxed when you take out your money. A Roth IRA uses post-tax dollars, but the money you make on the investments won’t be taxed when the money comes out. When talking to your financial advisor, be sure to also look at retirement fund options for your spouse.
A small business is a big leap, but working for yourself can be incredibly lucrative if things work out. Investing in your business means change, and change isn’t easy. However, by watching your industry, studying the culture, and investing within your risk tolerances, you can build a strong financial future.