Guest post by Lori Thomas
There are many people over 55 who are redefining what it means to be a senior and who are taking new chances and trying new things at this stage in their lives. This includes women who are making the jump into entrepreneurship and deciding to start their own business. However, when it comes to starting a business later in life, there are a number of unique concerns that business owners will want to address. One of the biggest, of course, is finances.
It is important for any new entrepreneur to stay on top of their budget when starting a business, but for senior women, it can be even more paramount. Being older when starting a business comes with more experience and it also comes with more potential risks. Most senior women do not want to risk losing all of their life savings at this point in their lives, as they may not have the same luxuries in that department as younger individuals.
The good news is, there are some simple, yet effective ways that today’s female entrepreneurs can make sure that they stay on budget as they embark on this exciting new adventure.
- Don’t spend a dollar without knowing how it is going to grow your business. Most business owners are pretty good about keeping track of what they spend, but instead of just thinking of every dollar as a necessity to get the business started, you need to think of how every dollar can potentially grow your business. This is a great way to make sure that you aren’t just putting money into your business, but investing in your business so it can grow and make more of a profit.
- Keep your business account separate from your personal account. You need to have a completely separate account for your business, and one for your personal spending. This means you should be “paying” yourself a salary, instead of just taking money out of the business when you need to. This also means you will not likely get a salary at all in the first few years.
- Consider leasing your equipment. Most businesses require a great deal of equipment off-the-bat, they also require furniture, an actual space for the business and more. This can add up to a lot of money. However, instead of buying all of these things (and likely getting a line of credit to purchase them) you can actually lease virtually any equipment. It typically makes it much easier to afford the monthly expenses and doesn’t leave you tied down to any one piece of equipment for a long time.
- Brush up on your basic accounting skills. Take a quick online refresher class to make sure you’re staying on top of your accounting skills. It can go a long way. You don’t need to be a full-blown CPA, but you need to remember the best ways to track your income and expenses and look at which activities in your business are profitable and which aren’t. A class can help you remember important tax tips and how to forecast potential cash flow. It will be the best class you’ve ever taken when you see first-hand how it can impact your business’s bottom line.
Starting a business can be overwhelming at any age, but it can also be a very fun and rewarding experience for any senior woman looking to follow her dreams. With simple, yet effective budgeting tips like this, any woman looking to start this new chapter in her professional career can do so without worrying about breaking the bank.
Lori Thomas has over a decade of writing experience in the health, legal, and consulting industries. Her writing for SeniorAdvice.com is informed by years of research as well as hands-on family expertise. She has a B.S. in Human and Organizational Development from Vanderbilt University. Lori lives in Austin, TX and enjoys traveling, yoga and spiritual exploration.
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