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5 habits of financially successful small business owners

We are bombarded every day by the lives successful people lead through the media – where do they live, what car do they drive, when do they wake up, what do they eat, etc. But what do we know about the habits that have made them into successful financially successful entrepreneurs? If you’re trying to develop your business into a successful one you know that it’s a tough road to take. It requires a lot of knowledge, drive, and dedication in order to manage your money right and achieve financial security and independence. Of course, it is possible, but it would be much easier with some insight from the people who already achieved that. That’s why Dean Willcocks Advisory have put together a list of financial habits that have taken them to success.

business-newspaper-business man-financial-finances Networking – buy something that’s not there yet

We don’t need to talk about the importance of spreading the network for any business, everybody knows that. But what a lot of people lack in understanding is that, going to business retreats and cocktail parties is not enough to build a strong network. Your networking must be implied and it usually includes taking a small hit at your budget. You need to pay something just to secure the future of your business. Let’s call it a favour – in return you’ll acquire a partner that will pay back at some point when you’re gonna need him the most. This ‛favourable friendship’ becomes a crafted partnership that will produce long-term sustainability and loyalty. Maybe you won’t get anything for your money right away, but every successful entrepreneur knows that financial success can’t be built on a short-term proposition.

Be financially smart

When people look at the successful companies the first thing where that success manifests itself is on the surface. All they see is luxury – comfy anatomic chairs in front of every desk, the newest technology, etc. – and they have a tendency to imitate that. But the reality is that all those things weren’t there at the beginning. When you’re just starting your business you have to know how to spend your money, you need to be careful with it. Ask yourselves is the fact you have old chairs really that important at this point? Do you need ‛monster computers’ for tasks that are currently at hand? Every successful business starts with the necessities – purchasing luxuries is the habit you will be able to develop much later.

Successful people know the law

This is more of a need-to-know thing than a habit. The law is always above business success and that’s why you need to be aware of all the financial liabilities of your business. Successful people know very well what they can be sued for, and this knowledge helps them to stay out of any legal trouble. You’ll run into financial difficulties if you don’t pay attention to how you’re spending your money and have the attitude that everything will turn out alright. Whether it’s a loan you’ve forgotten about or a retirement plan you didn’t think of, these things can lead to serious consequences such as bankruptcy or liquidation. Of course, being alert all the time can be strenuous, so you may want to consult a business advisory who can warn you about upcoming critical situations and provide you with the right advice.

Time is money

You think we didn’t have to mention this one, right? Wrong. This cliche is often misinterpreted. It doesn’t mean that you’re not supposed to answer the phone or spend time with your family. It is actually not about saving money, but spending it – in order to save time. If you want to become a successful entrepreneur the first thing you need to realise is that you can’t do everything by yourself and that sometimes you’re going to need to look for financial delegation.  Every problem requires a combination of time and money to be fixed, and it is your job to decide which is more valuable to you at that moment. You have two choices – to solve the problem yourself (time) or to hire some help from the outside (money). In order to make that decision, you will first need to know the financial worth of your time.

Safe financial decisions

In the game of business, the gameboard is constantly shifting because the market is never the same. Successful entrepreneurs know the rules, but they are also aware that they’re not immune to change. This is why they have developed the habit of testing projects before they launch a massive investment, which is being financially smart. This way they take minimal financial action and can easily find a way to adapt if needed. It’s a small risk from which a lot can be learned.

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