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Financial Literacy Guide for Entrepreneurs
Being an entrepreneur in today’s ever-changing world is difficult enough — now imagine having to maneuver through it blindly. Having the right guidance and a few tips can help set you up for success.
Here’s our financial literacy guide for entrepreneurs that will help direct you onto the correct path for your financial growth.
Why Financial Literacy Matters
A complete understanding of the financial world is a staple of your entrepreneurial success. Without it, you’ll struggle to make informed decisions and may fall into a pit of financial instability. Think of it like a gameplan. In order to win you need to have the ability to create a solid and sound plan. Financial literacy helps you do that.
4 Key Concepts
Here are four important concepts to remember when finding your entrepreneurial success.
- Budgeting: By creating and maintaining the proper budget, you can control costs, forecast revenue changes, and get the most out of your profits.
- Cash Flow: Learning and understanding how money moves in and out of your business gives you the ability to manage revenue, expenses, and capital, providing you with financial flexibility.
- Financial Statements: Examine your income statements, balance sheets, and cash flow statements to assess your business’ overall performance and financial health.
- Funding: Don’t rely on just one source for funding. Research several options that can help your startup or entrepreneurial endeavor thrive.
Utilize Resources & Build Skills
Following the above concepts is just the beginning. Getting the most out of the resources around you and building your skills will push you further into discovering your financial prowess.
- Start with financial planning and learn how to create an in-depth and fluid financial plan to outline your business goals and objectives.
- Conduct ongoing financial and spending pattern analysis to help determine your business’ growth and performance while tracking your spending.
- Discover how to properly manage risks that may affect your business and mitigate market volatility, economic downturns, and unexpected expenses.
- Help your business thrive by learning how to make informed investments and create long-term returns.
- Set financial goals that are obtainable but measurable and will push you to achieve financial accomplishment in a certain amount of time. This could involve saving a specific amount of money, reducing expenses, or increasing profits.
- Protect you and your business by creating and keeping emergency funds and investing in insurance in the event of unforeseen circumstances arising.
Develop and Follow Strong Strategies
There are a few things you can do to help sharpen these skills and build new ones. Here are our three recommendations:
- Financial Literacy Workshops: Many online and in-person courses and workshops are designed to help with the essentials.
- Accountants & Financial Advisors: Working with a financial professional or qualified accountant will help you discover areas of the financial world you may never know existed.
- Read, Read, Read: There’s no such thing as too much reading when it comes to financial literacy. Read books, articles and blogs and deepen your knowledge.
We Can Help
The team at Mowbrey Gil can answer any questions you might have about financial literacy and how you can utilize it toward financial success. Reach out to our team with any concerns or for any advice on your entrepreneurial endeavours.
We’d love to hear from you — Contact us today at 780.461.3800.
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