If you are a female entrepreneur on the first step of your new business, you have picked the perfect time! A recent study put Australia as third on the list of most successful female led businesses in the world. In fact, Australia’s top 30 female entrepreneurs had a combined revenue of over $25 million in 2015.
Are you ready to join the ranks of those successful women?
Let’s assume you already have your great idea and all the creative energy to launch it into the world. You will now be asking yourself – “What are the practical steps I need to take into consideration?”
You only need to spend 5 minutes on social media and you are being pitched to by women (and men) promising overnight success, 6 figure incomes and luxury lifestyles. The reality is it takes clever and calculated planning to achieve success.
Owning your own business also involves risks and challenges but if you are clear on your business goals and committed to your venture you are well on the path to success. Creating a solid financial plan from the start will contribute greatly to this.
When I started Financially Empowered I was still working full time.
I used the early mornings to do my marketing, draw up my financial plan, and work on my branding before heading to my job. The full time job helped to fund my start up costs.
When my role was sent overseas & made redundant locally, I saw the severance package as a unique opportunity to create the business I dreamed of. A business that would help many women launch their own entrepreneurial journey with the right kind of financial knowledge and support.
Financial freedom is a key goal of my business and I want women to know that they can achieve their own independence and success. A successful business with a firm foundation is often the key to this.
We are going to concentrate on 4 key areas:
- Initial Expenses
Whether you are starting a bricks and mortar business or working out of your home there will always be startup expenses.
These may be as simple as ensuring you have a good computer and printer or buying initial stock.
They may be more extensive and include rent, equipment or training. Whichever end of the spectrum you fall into it is crucial that you make a comprehensive list of everything you need to consider.
Have a look at my blog post on what expenses you need to consider as a startup business.
- Outgoing expenses
When your business is in it’s early days and you are still building your income you may need to look at some short term strategies. Think about whether you can make your dollar go further by reducing your living expenses.
A great way to start is by tracking all the expenses you currently have. Are those visits to the coffee shop adding up to an expense you could do without? Do you have subscriptions that you could cancel for a short period?
It may be worthwhile having an appointment with a Financial Advisor to look at where you could reduce some of your outgoings.
- Budgeting & Saving
It’s tempting to not track what is happening with your income and expenses and just focus on your daily business.
However having a good plan for your income and savings will mean you will be able to track how well your business is going. It will also provide you with the reassurance of knowing that your financial priorities are being met. This might be paying off a credit card or your monthly mortgage. Don’t fail to take into account money for your own superannuation, tax obligations and insurances.
Whatever you decide is a priority or a not negotiable, you will be confident that you know exactly when and where your money is going. Once you have done this, allocate an amount to savings, even if it is just a small amount, get into the habit of regular savings.
- Income Goals
A lot of the time when I speak to new business owners they aren’t clear on exactly how much they need to be earning to make their business viable. Once you have a clear budget it will give you a good idea of what expenses you need to cover, I would suggest allowing an extra 10% – 15% for unexpected extras.
A good way to gauge your income would be to consider what you were earning before you started your business – was that enough? could you make do with less for a few months? Some business owners will need to assign an hourly rate to their services, if this is you my hourly rate calculator can help you work out how much you need to charge.
It may be worthwhile considering whether you need to work additional hours in the beginning of your business or take a part time job while you are building your client base.
It’s an exciting time creating the business of your dreams. I remember it well, that feeling of giving myself the gift of ongoing financial freedom and creating the perfect business for me. As an entrepreneur you can soar to great success and having a good financial basis will benefit you greatly.
As a startup business I would love to invite you to book your free complimentary financial consult to discuss your individual financial story. You can book in here. I want to help you create a successful and profitable business.