Saving and spending sensibly is a habit that’s good for literally everybody. When it comes to entrepreneurs, and not knowing whether a paycheck will hit the bank, it becomes even more imperative to be wise with your money. Many women entrepreneurs often end up not focusing on their own finances, preferring to involve themselves completely in their craft.
But for new entrepreneurs, the unpredictability isn’t a one time affair. Start-ups deal with a lot of teething issues during the early stages, especially when it comes to building a reputation and their internal capabilities. An entrepreneur must always be prepared to deal with the market and ensure their finances are in order not just on the professional side but the personal side as well. Having some form of savings for rainy days will go a long way in keeping an entrepreneur’s head above the water.
If you, as a leader, display a good understanding of tax planning and investing money, it reflects in your work as well. Not only do you bolster your image in front of investors and important stakeholders, you also end up creating a company culture that helps employees make smarter financial decisions. It goes a long way in boosting employee productivity and satisfaction levels.
Some of the biggest advantages of women entrepreneurs being more focused on financial planning right from the get go include –
- Stronger Financial Knowledge – You get to get down and dirty with the nitty gritty of finance. This in helps you understand concepts like debit, credit, what cash flow means, and how to plan taxes. You will find it much easier to make business related financial decisions once you start working with a certified financial planner.
- Improved Focus On ROI – As you learn the ropes you will notice an improved focus on the value gained from spending your money and time on a commodity/service.
While these two points should enough to convince you, here are the top 5 reasons that financial planning is important to women entrepreneurs.
- Laying The Foundation – When you start to talk about financial planning in your organisation, you are setting a precedent for your subordinates to follow and helping to inculcate a culture of savings and making conscious financial choices, be it at home or at work. Being cognizant of your staff’s needs which go beyond the official purview immediately boosts your image as a leader as well. The best part is that all this is true and your choice to make financial planning an active part of the office culture lays the foundation for a healthier, more productive workplace.
- Display Pragmatism – When your investors and shareholders see you working on your finances and watch you plan ahead for the future it builds confidence in them that you are a practical and smart leader who can be relied upon. This could potentially be the make it or break it factor when it comes to bringing investors on board. More than just worrying about just the numbers, they are looking for entrepreneurs who know how to plan ahead and be prepared for difficult times in business. They have made a long term commitment by investing money into you and they’ll only do that if they’re certain that you can ride the wave all the way to the end.
- Expand Your Horizon – Apart from making sure that you are financially secure, financial planning can even help you generate enough wealth to open up a new business venture in the future. We all know that entrepreneurs don’t like sitting idle. A businessman or businesswoman might be ok with performing the same task over and over again, but am entrepreneur is rarely satisfied by the routine. With the right financial plan in place, you can easily try out a new line of work without worrying about the financial implications if it doesn’t work out.
- More Peace, More Business Wins – The less you have to worry about, the more you get time do. When you are not worried about debt, payments, bills, and expenses, you are working at a much higher level of efficiency than when you have something troubling your mind. If you stick to your financial plan, you’ll be able to devote yourself 200% and do work more efficiently and with a lot more positivity.