The Part of Finance We Don't Consider

I recently adapted interest in numerous financial blogs. Trying to develop a better understanding about investing, planning, and what everything means. I stumbled across this blog "How to Do a Wallet Audit" that really got me to thinking. At first it seemed like some crazy mumbo jumbo on how to stay secure if your mugged, then it got me to thinking what if? What if I am in the process of starting a business, this happens to me and my credit is affected? What if I have resources for my business in my wallet? Would I be able to track it all?

I mean of course I thought about it for my personal sake too but just the thought of how my personal finances do in a sense affect my professional. That's if I don't do the proper planning as a business owner. It forced me to look into ways to establish business finances that do not cross the boundaries into my personal. I began to understand that with me seeking to become a business owner I should began to treat my personal finances in such a way that I am always secured and stable. As well as seek ways to keep my business financially secure.

All of this became fool circle when I took to reading the book "Rich Dad Poor Dad" by Robert Kyosaki. His literature that is geared toward financial awareness and life lessons motivates me as does this blog. It motivates me to realize financial stability and awareness comes as a lifestyle. You know how people say, "If you want to be healthy, healthy living is a lifestyle. So you have to change how you live". I think the same can be said for the world of finances. It's something you have to put the effort into doing in order be successful at it.

Is Your Business Worth Owning?

As I work on my masters. My program is focused on helping rising entertainment professionals like myself build our own business. As we focus on the ins and outs of developing these companies, we all see something worth owning in it.  Rather it’s our passion for music, sports, film or anything related we have an idea that could lead us to join the world of euntreprenual. As I researched different topics I stumbled across this one titled “Is your business great to own?”

Although the question seems straight forward and most people in the start up phase would scream YES! This article really outlines just a few key points that could help you define your true answer. You see it’s not about how passionate you are about your industry or how long this has been your dream. It’s truly about the stability of your company. This short but detailed article states some really good points.

Ultimately the key to having a stable company or revealing if your company is stable is to ask yourself these questions:

1.     Is my company valuable to someone else?

2.     Does my company provide unique benefits for founders and owners? (That’s you!)

3.     Does the company create tax efficiency?

4.     Is the company vulnerability free?

5.     Does it have a great culture?

Of course building a company takes more effort that answering five questions. But I think this is a really great way to get yourself on the path to creating a company that is stable, valuable, and benefits you and your customers. As you define your market and how you want to operate consider this question in every decision you make. Will this decision for my company make it NOT WORTH OWNING? This is just a little way to keep you on your toes and on the right path.