Few of the entrepreneurs are unaware of the few facts regarding money. They fail in giving attention to their personal finances which demands due attention. They think dealing with them is a child’s play, as it is interconnected with the business finances. There are certain financial issues you need to keep in mind which can be of great help to you.
Bill Collier gives due attention to the importance of personal credit rating. He says that many of the business owners think that personal credit rating has no affect on their business which is entirely wrong. It leaves deep impact in their business. While doing some agreement with the vendors concentrate on the personal guarantee. Try to pay the money within 30 days. You need to be obliged to all the business debts as much as you can.
You need to focus on diversifying your portfolio. Try to make large investments. If there is lack of diversity then there are more chances for small business owners to go down turn. Develop partnership with large and small companies. Create a mixture of stocks and bonds.
Whether it is a partnership or proprietorship the selection of entity would be of great importance. It will have deep impacts on your personal finances. Try to make the selection with fully open mind. For this it is advisable to seek advice of an accountant. You also need to be aware of the laws of your state. For example in state of California you have to pay tax of $ 800 even you have made no progress in business. It is compulsory for you.
It happens that business owners become so busy that they forget their personal finances. They leave it all on their partners. It is not good at all. One should set a date in month or day in week in which they discuss all their finances and keep an eye on all expenses.
People need to keep their business credit cards separate. Getting secure loans from bank could be better. Interest rates would be lower. Through this you can have chances of long run business. Loan from small bank could turn very beneficial.
Borrowing money is not good idea at all. One should be careful from beginning regarding managing their business finance and personal finance.
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