Financial Management for Entrepreneurs: What You Need to Know When You’re Leading the Way

Entrepreneurship means a lot more than starting a new business. It’s a mindset. It’s also influence. You’ve managed to influence a sector such as industrial products, software engineering, or medical technology. Maybe you’ve developed new ways to resolve service-related challenges, revolutionizing the consumer experience. Existing business owners and managing directors are also very much entrepreneurs when the companies they run continue to evolve and grow in value. Some even come to a juncture where it’s time to spinoff and start new firms. Whatever the industry, what is certain is that you have blazed trails.

As an entrepreneur, do your aspirational views change the way you address important topics such as personal financial wellness? Financial management for entrepreneurs isn’t always a subject you hear widely discussed in networking circles. It’s easier to talk about tracking stock tickers and IPOs! But here, you’ll find some valuable information and tips on how to take a more assertive stance with your money habits that you’ll be thankful for later.  

When you spend money on something, does it pay you back?

When you’re leading the way, this is a question you need to ask yourself regularly. You will, of course, need to invest wisely in order to see rewards, whether it’s your time or money, but there are some expenses that you need to be more discerning about. For example, the yearly memberships you pay to professional organizations add value to your career. You get networking opportunities with colleagues and a chance to invest in your chosen field. However, if you pay monthly or yearly dues to an organization that you don’t attend engage with regularly or whose resources you don’t utilize, maybe it’s time to think about what you’re getting in return. If your heart isn’t in it, then you are draining money. Enhanced gym memberships are important because you use them to stay healthy, relieve stress, and remain confident. Just be sure to make time to go!

Delayed gratification

Everyone loves new electronics, shoes, clothes, and cars. Though, it’s probably not a great idea to purchase it all at once! Think of all those nice things you love as rewards for setting goals and then achieving them. You may very well have the means to go out today a pick up whatever it is. That new car or gadget may even be on sale, but it’ll mean so much more when associated with a major accomplishment. You gain respect for showing restraint. Financial management for entrepreneurs has a lot to do with becoming relatable as a leader by standing apart. You get this simple opportunity to make a good example for those around you.

The uncertain nature of business

When you run a company, you’re responsible for a multitude of primary stakeholders:

• Customers and Clients
• Shareholders and Investors
• Creditors
• Employees
• Your Family

Some managers stress every time a payroll period rolls around, even when the business is doing well. Other times, you plan and execute your strategy perfectly, but the deal still falls through and it shakes your confidence. However, you manage pressure daily, and you’ve got a presentation in an hour, which you nail. It’s all in a day’s work for a leader in your field.

You know that you have these innate capabilities, so now that you’re charting your way forward with good spending habits, wouldn’t it be great if you had a strategic, long-term plan for your finances, just as you do for managing all the day-to-day ups and downs of being at the help of your own business?

What does financial management for entrepreneurs look like?

You know when you need to get guidance to run your business. The same approach applies to financial management for entrepreneurs. Smart entrepreneurship is knowing when you aren’t an expert at something and seeking advice from someone who is. Having a retirement plan in place is essential, of course. However, do you have a plan in place for the investments you’re making to generate new wealth when you’re no longer working? What are your successes in making global equity and stock investments on your own?

If you’re thinking of starting a family, others will depend on your income to support them. Wealth management accomplishes what careful spending habits and general financial planning on their own cannot. Experienced wealth managers offer a high-level, holistic view of wealth with an eye on estate planning. SD Mayer, housed in the San Francisco Financial District, offers individuals and families a fully-staffed office of financial services, including tax strategy and accounting services. Whatever your goals, the professionals at SD Mayer can help you fit your plans into your life in a way that works for you, just as you do with your business every single day.

Entrepreneurs are great at keeping their eyes on many things at once and implementing quality controls from start to finish. The professionals at SD Mayer have the same approach with leading you to financial success. Contact us, and a trained associate will be happy to help you on the way to financial management as an entrepreneur.

Image Credit | Jacob Lund | Shutterstock