There are many benefits of being an entrepreneur. You get to be your own boss, you are hopefully providing a product or service you feel strongly about, and the business is yours. However, that also means that you are in charge of your own finances. This may sound scary to some. Thankfully, there are tons of resources available to help guide you along your financial journey as an entrepreneur. Local clothing La De Da clothing boutique owner and HomeTown Bank customer, Carole, offers her experiences of managing finances as a small business owner.
1. Start Saving Immediately
You’re never too young to start managing your finances. In fact, the earlier you start the better off you will be. Having a solid amount of savings in the bank will prevent you from having to borrow more money. Speaking of borrowing money, a.k.a debt, your credit is just as important as your savings. Your credit history will indicate how much credit you can qualify for as well as your interest rates. Both of these variables are vital for entrepreneurs. Carole agrees.
“When you’re young, start getting credit and keep it in good standing. It’s very important to save early. Get everything in line as early as possible,” says Carole.
HomeTown bank offers a plethora of resources for business owners including business loans and business credit cards. You can also stay up to date on all of your finances through HomeTown’s digital banking resources that are available 24/7 to customers.
2. Choose a Bank that Cares
There are many reasons you should take careful consideration in who you bank with as en entrepreneur. Beyond a bank that has extended hours, mobile banking, and other business perks, you also should bank with someone who cares. Carole says that she’s found what’s important to her as a small business owner with Hometown Bank.
“Every time you call you get a human on the phone. When someone knows you by name, it is so much easier to get things accomplished, rather than going with a large bank that doesn’t know you from Adam,” Carole says.
3. Educate Yourself
There’s not enough schooling in the world to prepare you for being a business owner. There certainly are many helpful resources, but until you become a business owner there are some things you cannot teach. Thankfully, there are some things you can teach yourself. Carole emphasized how handling her payroll has saved her business lots of money throughout the years.
“I do a lot of our own payroll. We see an accountant once a year and that saves me a ton of money. Taking classes in accounting is a very wise decision for an entrepreneur. You then have control. If you don’t how to do your payroll correctly, how can you be sure someone else is?” says Carole.
Being an entrepreneur comes with many challenges, and even more rewards. As an entrepreneur, your finances are extremely important and should be well taken care of. Start with a good bank, and continue to educate yourself about managing your money.
Learn more about HomeTown Bank’s business resources here.