When you are a small business owner, it can be easy to get wrapped up in all the work that you are doing and forget that you are actually not, in fact, your business.
And that can mean you may not be separating your business and personal funds.
It’s a pretty simple thing to understand: Your business money is NOT your money. It belongs to your business. You should be putting your business money into a business account and then writing yourself a payroll check.
While this may seem redundant and a waste of time, it’s actually a mindset shift that, as a small business owner can not only help grow your business but help you set both small- and long-term goals for professional growth.
All that from a bank account? Yes! It’s true.
Small business owner = CEO
I always tell my clients to think of themselves as the CEO of their organization. Even if you are a company of one. You are responsible for generating revenue. And if you aren’t generating enough revenue, then you need to learn how to manage your expenses and find MORE revenue.
And the only way you’ll do that is to see what’s coming in – and what’s going out. Many small businesses make the mistake of just throwing all their revenue in their personal account and then spending it on what they need or want without tracking it.
But when you do that, you’re not looking critically at your revenue and you are probably missing ways you can grow or even cut back.
Salon owners are a prime example of this. Many don’t always know exactly how much they make in a year and they find out via their accountant annually. But when they go to grow or expand, they don’t often have the proper records needed to get a bank loan – meaning they aren’t a viable loan candidate and their efforts to expand are thwarted.
Set the ground for your growth by separating your business and personal funds today and reap the benefits tomorrow!
At YMT Consultants, we believe in the power of small business. We partner with clients to develop and implement a plan of action so small business owners can grow and achieve their goals. Want to learn more? Contact us today.