Throughout the last 17 years, my business associate and I have witnessed the transformation of our personal finance platform from a mere Australian credit card blog into an international enterprise. During this journey, I’ve adopted various financial habits crucial for achieving my fiscal and business aspirations. These habits are what I’m now passing along as guidance for fellow entrepreneurs.
Top financial tips for entrepreneurs
Here are my ten essential practices:
1. Establish and monitor specific goals.
It is vital to set clear financial objectives for both the near and distant future. Reflect on the financial achievements you hope to reach in six months, a year, and a decade, and document them thoroughly. Formulate a concrete (and achievable) strategy to steer you, and routinely assess and modify it as circumstances evolve. Don’t just compile these insights and tuck them away in a folder or drawer. I schedule reminders for check-ins, and during my reviews, I consider: “What progress have I made since the last assessment? Are these goals still relevant for their intended timeframe? What resources do I need that are currently lacking to achieve these targets?”
2. Explore your loan alternatives.
In the initial stages, transforming business concepts into reality can be challenging. A business loan may alleviate early financial pressure and facilitate future growth. However, it’s essential to remain cautious about the amount borrowed to avoid undue stress later on. Compare your lending options to ensure you secure the most advantageous deal for your venture.
3. Understand that the first offer is merely a point of negotiation.
If every entrepreneur settled for the initial “no” they encountered, we would see significantly fewer businesses thriving today. Whether I’m aiming to convert a “no” into a “yes” or negotiating a better price, my goal is always to obtain the most favorable deal possible, whether for business transactions or personal purchases. I firmly believe that negotiation is a skill anyone can develop, and once perfected, many are surprised at how much room there is for negotiation. Don’t hesitate to inquire if the proposed offer is the best available, or suggest possible discounts (like bulk purchasing or cash payments).
4. Utilize outsourcing effectively.
In our digital age, it’s easier than ever to collaborate with skilled professionals globally, allowing businesses to acquire top talent whenever necessary. By embracing outsourcing, you might find that you’re paying less for high-quality services rather than hiring possibly underused full-time employees. Be prepared for potential international transactions if outsourcing, but by shopping around for service providers, you can ensure that the overall costs remain beneficial for you.
5. Keep track of your spending.
This may seem straightforward, but one of my cardinal rules is to always live within my means—and this is vital financial advice for entrepreneurs. Maintain awareness of your income, ongoing expenses, and unexpected costs, while also setting aside funds for savings. This not only provides insight into your spending patterns and fosters a sense of control, but it’s also an effective method to help you achieve your financial goals.
6. Bootstrap your operations.
When Frank and I launched finder, we relied on an old laptop with missing keys, avoided paying ourselves for years, and rented out rooms in our apartment to generate income. Wherever possible, limit expenditures. Get creative to stretch your budget further, such as using a coworking space to benefit from shared resources or making use of existing assets like older computers and technology.
7. Focus on growth, not spending.
Avoid spending money before it’s earned, and resist betting on success. While it may sound like a cliché, it’s crucial to prepare for the unforeseen. Consider whether prioritizing revenue growth over cost-cutting aligns better with your business’s future. You never know when challenges may arise, so holding off on lavish expenditures for the sake of financial stability might be wise.
8. Invest in your workforce.
When considering the well-being of your team, my perspective on finances shifts slightly. Your team consists of the individuals who will help propel you to success. At finder, we offer a strong training and development program, encourage team members to pursue their interests, and provide flexibility. This not only boosts productivity but also mitigates burnout—benefits for both our business and our people.
9. Keep asking questions.
We enhance our understanding by asking inquiries and seeking guidance from those with greater knowledge. This could be a financial consultant, a business strategist, or even an informed acquaintance. The key is to listen attentively and leverage the resources available to you. Gaining insights from those around you regarding finances and business will prove far more advantageous than relying solely on what you know and remaining stagnant.
10. Maintain humility.
Even as finder transitioned from a small-scale business to a worldwide entity, Frank and I have never lost sight of our origins, working on that outdated laptop and pursuing our initial ambitions. We revisit our foundational days whenever we enter a new market; it always feels fresh. My message is, no matter how much revenue you generate, remember your starting point, avoid complacency, and never let go of the motivation and passion that drive you on this journey.
