3 Things You Should Do As a Small Business Owner For Financial Success

3 things small business owners should do3 Things You Should Do As a Small Business Owner for Financial Success

During my tenure in the Business Banking department at a local bank, I had the privilege of working with the Presidents and CEOs, CFOS, and COOs, of some of the best small businesses throughout Columbus, OH. Before I would wrap up the sales call, be it a prospect or current customer, I would ask them to share the most important financial lesson that has yielded them great success. The answer was two fold for me: 1. I would know what banking products and services I could offer that would solve their problem and 2. I was an inspiring small business owner!

How do small business owners position their company for financial success?

1.Work on personal credit– not just your credit score BUT behaviors. how do you handle your personal credit: Do you pay your bills on time? Do you tithe? Do you save or do you spend every penny you have? Healthy personal financial decision making skills will role over to setting your small business up for financial success.

**Side note: Separate personal finances from business finances, do not combine the two! **

2. Have a basic knowledge of the financial strength of your company- do not leave it to your Finance personnel or Accountant alone. Do you know how to reconcile your books- income/expenses or do you leave the person outsource company to do it all? Do you know how much cash you have on hand? What is the net profit of your company? As a small business owner, it is imperative to have some knowledge of the financial health of the company at all times.

3. Plan- have a 3yr, 5yr, and 10yr financial plan in place. Where do you see your business going? Will you need bank financing? Can you get financing? Will your company stay small and local or do you see it expanding to a corporation and perhaps a franchise? Small business owners have to write out everything that you will need in order to achieve your goals, even if you don’t have it today).

Keep in mind, this list is not exhaustive. But as I compiled the responses collected over the years and currently applying to LLQ Financial, I must admit, these steps are proven to set any small business on the right path to financial success!










Financial Freedom

Financial freedom means different things to different people.

Some may say financial freedom means more money in the bank.

Some may say financial freedom means the liberty to pay bills on time.

Others may say it means good credit. None of these meanings are wrong.

It’s actually a combination of all of them. On a very basic level, financial

freedom means managing your income so that you can take care of your

basic needs such as shelter, food, and transportation and saving for

financial goals.

financial freedom

financial freedom

Financial freedom is not reached by accident nor do it happen overnight.

Deciding to become financially secure requires a clear mind and the

willingness to do the work required to reach your goal. Regardless if

you are just stepping out on your own or if you have debt over your

limit, you can live a life of financial freedom by developing a plan to

help you get there over time. Although uncertain circumstances can

and will happen to us all, having a financial plan helps you to

reevaluate the things that are most valuable in your life. Then you

can reposition your goals that will allow you to handle the immediate

crisis without overlooking other important things.

It does not matter your income level, you can create a financial plan that

is realistic for you. It can be as simple as making a commitment to live

within your income, to have an emergency fund, and to pay your current

bills on time.  It will take work on your behalf in order to reach the

financial freedom that you desire. The key is to have a plan! Consider

your financial plan as your road map to get you to your destination.

Start today, make a choice to make your plan and then the rest is easy…work your

plan! – Lurenna Obey, CEO