NEWS AND INSIGHTS UPDATE:
How do you manage your money while you’re growing your small business? Money is tight and it’s more important than ever to make sure your finances are secure as you dive into the world of being an entrepreneur.
Melinda Emerson of SmallBizLady asked financial expert, bestselling author, and financial editor of The Today Show on NBC, Jean Chatzky, to share her advice for small business owners.
Jean explained that the biggest mistake a small business owner can make with their money is launching with no reserve. She said:
“Without a doubt, it’s betting it all on the business – and leaving little in reserve for yourself and your family. Look, as a business owner myself, I know what it’s like to fall in love with your own idea. I also know what it’s like to invest in some of those ideas and see them go nowhere. The point is that you must protect yourself by spending at least a little time and effort on your own finances. That means having an emergency fund before you launch your business, saving for retirement (small business owners don’t have the benefit of a 401(k) or employer match, but they can take advantage of other options, like a Roth IRA and a Solo 401(k), which will allow you to save up to $17,000 as an employee – you’re considered your own employee – plus an additional 25% of your self-employment income, up to a maximum of $50,000 a year). You should also be keeping debt to a minimum, and making sure you have the proper insurance in place – health, life, and disability.”
Do you have money in reserve for yourself and your family?
Get the Details: How to Manage Your Money While Growing a Small Business via succeedasyourownboss.com
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Susan Gunelius
Susan Gunelius is the Founder and Editor-in-Chief of Women on Business. She is a 30-year veteran of the marketing field and has authored a dozen books about marketing, branding, and social media, including the highly popular Ultimate Guide to Email Marketing, 30-Minute Social Media Marketing, Content Marketing for Dummies, Blogging All-in-One for Dummies and Kick-ass Copywriting in 10 Easy Steps. Susan’s marketing-related content can be found on Entrepreneur.com, Forbes.com, MSNBC.com, BusinessWeek.com, and more. Susan is President & CEO of KeySplash Creative, Inc., a marketing communications company. She has worked in corporate marketing roles and through client relationships with AT&T, HSBC, Citibank, Intuit, The New York Times, Cox Communications, and many more large and small companies around the world. Susan also speaks about marketing, branding and social media at events around the world and is frequently interviewed by television, online, radio, and print media organizations about these topics. She holds an MBA in Management and Strategy and a Bachelor of Science degree in Marketing and is a Certified Professional Career Coach (CPCC).
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