4/20/22, 11:54 AM
Finance Advice for Entrepreneurs | Tom Kutzen | Entrepreneurship
a
Finance Advice for Entrepreneurs by Tom Kutzen | Apr 13, 2022 | Tom Kutzen
Being an entrepreneur is hard enough, especially when it comes to creating new products and managing teams. The lack of financial literacy has been an issue for many entrepreneurs, as they typically cannot afford to take on risks. If you’re just starting and cannot afford the level of services that you might need, you might as well start hitting the books. Raise and Maintain a Good Credit Score Getting started with a good credit score is very important if you want to borrow money for a new venture. Having a solid score is often the deciding factor for getting approved for a loan. Being responsible with your money is the building block of good credit. Having a little bit of extra cash can help lift your score. Use Your Personal Money Efficiently
https://tomkutzen.net/finance-advice-for-entrepreneurs/
1/3
4/20/22, 11:54 AM
Finance Advice for Entrepreneurs | Tom Kutzen | Entrepreneurship
It’s widely believed that personal finance is the primary source of capital for startups. However, doing so carelessly can harm both your company and checking account. One of the most common mistakes startups make is transferring large amounts of money without clearly understanding how it will affect them. Create and Stick to a Budget The only way to keep up with all of your financial commitments is to put in the effort to manage them properly. Even the most seasoned business leaders can’t keep up with their numbers. Due to the varying characteristics of businesses, you will likely need a different budget for different periods. Having a proper balance sheet is very important. Build an Emergency Fund According to Preferred CFO, 82% of failed businesses have encountered cash-flow issues. Having an emergency fund is also important to ensure that your company is resilient. Even if you don’t have a massive stash of cash, having an emergency fund is still essential to ensure your company is prepared in case of a financial emergency. Learn Your Tax Regulations To operate a business, you must understand the various tax regulations and avoid unexpected expenses. Learn them before starting your business to avoid expensive pitfalls in the future that could put your business at risk.
Search
Recent Posts Finance Advice for Entrepreneurs Knowing When Your Business Idea is a Good Idea How Entrepreneurs Can Leverage Social Media Leadership Styles for Entrepreneurs Accounting Skills That Entrepreneurs Need to Know
Links Tom Kutzen AngelList https://tomkutzen.net/finance-advice-for-entrepreneurs/
2/3
4/20/22, 11:54 AM
Finance Advice for Entrepreneurs | Tom Kutzen | Entrepreneurship
Tom Kutzen ElephantJournal Tom Kutzen F6S Tom Kutzen Medium Tom Kutzen MuckRack
© Tom Kutzen 2022
https://tomkutzen.net/finance-advice-for-entrepreneurs/
3/3