SURVIVING AS A SOLO ENTREPRENEUR – THE FOUR BASIC WAYS.
Being a solo entrepreneur is one of the daunting decisions to make, but interestingly fun because you get to become your own boss.
What makes it more exciting is that you get do things the way you want it, enjoy some form of ultimate privacy and freedom as well as deciding how much you can earn.
Nevertheless being a solo entrepreneur (solopreneur) implies you need to have some form of comfort within your niche. As a friend blogger, James Maxwellson will say, ”..Not knowing where the next meal would come from, but still pressing on- the life of an entrepreneur.”
Whereas being employed by a company or business brings some state of external comfort and employee -associated benefits, being a solo entrepreneur is otherwise.
Startup Entrepreneurs or in this case Solo Entrepreneurs, have to be consistently active in business in order to survive with other competing businesses.
If you are a solo entrepreneur looking for some tips on how to survive in business, then you will have to consider these tips.
- Do not combine you personal funds with your business gains.
It is no new thing to use personal funds to start a business, but immediately your business starts to generate revenue, there should be a bold line drawn between your personal funds and your business gains.Mixing the two complicates everything from tax time to selling the business down the road. There is the need to keep records of your business transactions separately from your personal deals.You can start that by taking inventory and stock especially when you are running a retail shop which sells goods or commodities.
- Build steady cash flow
Every smart entrepreneur knows that poor cash flow can be enough to put you out of business. That’s why it’s critical that you find ways to keep revenue coming in year round.One simple way to improve cash flow is to invoice efficiently. Encouraging faster payment means steadier income and fewer unpaid invoices. Especially for seasonal businesses, think creatively about how to smooth out ups and downs.
- Invest Wisely
Bad Investments is one of the things killing many startups in many niches. It is undoubtedly true that every business wants to stay in business to ensure growth and development.But what is the use of putting money into a product or service which yields less viable profits to you as an entrepreneur.You can consider consulting investment advisers who can offer you some of their free services.
Set up an emergency account
By emergency account what do I mean? An Emergency account is basically like a savings account for your business. But in this case, there is a thick line drawn between how you within money from that account to do business.
Having an emergency account can help you avoid making desperate decisions, incase any unforeseen circumstance occurs.
To determine how much you need, you should consider asking yourself these questions- How long could you stay afloat with no revenue coming in? What’s the likelihood of being sued by a customer?
The right amount will vary by industry, and by your personal comfort levels with risk.
When you consider where to open an emergency account, think about how quickly you can take the money out if you need it.
As said in the previous tip, there are always investment or financial advisers out there ready to share with you their knowledge.
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