External pressures and demands on our business
It is inevitable that at time there will be personals, family or other external demands that will tempt or necessitate us to take money from our start up.
What do we do in these situations, how do we help both our business and our family?
A simple solution is to keep separate records, one set for the business and one for self etc. When this is accomplished it is also important to pay yourself a wage or salary. This wage or salary needs to then cater for all external needs and the business must remain separate and segregated.
Besides just keeping separate records we should also have separate accounts for our business money and the wage we receive.
When family approaches us for money it can be very difficult but we need to exercise the discipline not to dip into our business resources. Its good to share but it is not wise to take funds from a business if it will be detrimental to the long term viability of the business.
We may have the short term good feeling for helping out but end up with the long term consequence of a failed or struggling business. Sometimes it is not always the best thing to share.
GoooD
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This article is like talking to me directly, i am presently having difficulties in saying no to dipping my hands in savings that ordinarily come what may i shouldn't. Your post is a wake up call. Thanks a lot.
It can especially be hard when your family isn't doing as well as you are. But just let them know how much more you can help everyone later by making sure your business is safe to grow now.
This post is helpful, thank you
what was your favorite part?
Not to mention the fact that it can be a nightmare during tax time if you don't keep your business and personal finances separate.
Yes!
This is so so true and necessary. I've had friends get into trouble for this. But it's so annoying how some family and friends feel entitled to get things from you.
Without discipline, one would just crash his/her business because of constant stress from people.
Yes, a lot of people have problems due to not bothering to pay attention to this. Nice to find you. Just followed you.
Thanks.
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Its always so tough to outright ignore helping especially considering this person at one point or the other has also done something immeasurable for you in the past, and no matter the explanation and reasons you give it just doesnt count or matters to them...You get labelled as selfish, stingy and evil. But as you rightly said business funds should be for business ONLY so as to avoid stories that touch...
Well said.
True, preplanned investments for both for our work and family is really important and in tough times we would not face the situation where we have to disturb the one book of accounts for other. Thanks for sharing this great opinionated post. Wishing you an great day and stay blessed. 🙂
Great comment. I like the idea of "preplanned investments" into each.
Thank you so much. Wishing you an great day and stay blessed. 🙂
true
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