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There should be a clear separation of personal and business finances.
Track your spending and saving, create passive income streams, and plan for emergencies.
Entrepreneurship inherently involves financial risk. That doesn t mean, however, that entrepreneurs can t become financially secure. Remember, your personal finances and business finances are not the same. Responsible entrepreneurs aren t just focused on making their business succeed. They also take steps to achieve financial security in their personal life.
1. Create true separation between personal and business finances
Failing to separate business and personal accounts can create serious financial trouble in the long run. If the business were to fail, you would lose all the money that is also being used to pay your rent or any other expenses. Even more troublesome, liability issues could leave you on the hook for company debts or legal troubles.
Tobi Roberts and her husband Mike (who you might recognize as ‘Mortgage Mike’ from their billboards) started City Creek Mortgage together in their 20’s. They had previously owned a construction company and saw first-hand the difficulty people were having trying to get home loans and “we knew we could do it better,” Tobi says. Her goal was to save people money while delivering a 5-star client experience. Twenty-three years later, Tobi, CEO and Co-founder of City Creek Mortgage has created a set of core values and hires employees who passionately believe in them. Straying from traditional “high-commission” loan officers, City Creek Mortgage has instead chosen to employ salary-based loan officers. She says, “We don’t have loan officers who are working for a high commission and competing with each other. We all work together to save our clients money and represent their interests.”