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Admittedly, this is a potentially difficult time for everyone worldwide, but no matter what is going on in the short-term, businesses of every shape and size can still find time to strategize and plan their finances. While we have no idea what the future holds, it is beneficial to have a plan to accomplish all your business goals and objectives. Consulting a financial adviser, like Jason Vanclef, may be the very thing to do in these unusual times in which we now find ourselves.
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As you begin to delve into the world of financial planning where your business is concerned, there are several things you should keep in mind along the way.
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Know the facts.
It is imperative that small business owners are aware of their financial prospects and the fact that at least fifty percent of businesses do not survive past the first five years. All business owners must realize the enormous risk they may be taking in beginning a business of any size. Sometimes, young entrepreneurs are not aware of the intensive labor and amount of capital required to begin their own business. They may be enamored with “being their own boss,” working from their home, and not having to clock their hours. While those are perks of having your own business, prospective business owners need to understand the financial risk and what is required of them to start and maintain a business. Planning and research are vital keys to eventual and ultimate success.
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Get help through financing.
While many new entrepreneurs may not be aware of the financial help that is available to them (or they may think they are able to finance it themselves), there is an extensive variety of funding available to small business startups. This is another time when a little bit of research can go a long way. When beginning a new venture, the volume of money needed is regularly underestimated. Even if you have a savings account with a substantial amount of money you have saved over the course of many years, if you dump your entire savings into your small business, you will probably discover at a date not too far in the distant future that you are more financially strapped than you expected. If, however, you take out a loan, do some crowdfunding, and/or recruit a few investors for your business, you will find that you have a cushion of capital available in those crucial first few months (or years) for just when you need it. Don’t be afraid to seek financial assistance because it may be the key to “keeping the lights on” at your new business.
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Consider hiring a financial planner.
Assuming you went to business school, you probably have a good handle on and understanding of finances and budgeting. However, financial planners are typically rather highly skilled individuals who make it their business to take care of the finances of their clients. While you might think financial planners are an unnecessary expense–especially in the beginning–their specialty is the management of finances. More than likely, they are more aware of finances than most people just starting out, and with the array of services out there today, it is probable that you will find a reasonable financial planning service that will meet all of your needs while charging a reasonable price for their services.
