Five financial tips for entrepreneurs

An entrepreneur’s life can be very stressful. Managing employees and work overload and making important decisions can put you under a lot of pressure. Here are a few tips to help you reduce your stress and sleep better!

In short

To reduce your stress, you could:

Assess your financial situation;
Set a realistic budget;
Track your accounts receivable;
Diversify your sources of income;
Take care of yourself.

1.

Assess your financial situation

Anticipation is a key element of coping with tough times.

Take the time to assess your company’s financial situation with help from your accountant and financial advisors. Review your monthly cash inflows and outflows. This will allow you to better anticipate the more difficult times.
Pinpoint any unnecessary expenses: Once you’ve analyzed your spending, you can reduce the non-essentials. This will free up cash resources and reduce your financial stress.

2.

Set a realistic budget

Plan your spending: A detailed budget will help you to effectively manage your finances and avoid unpleasant surprises.
Build an emergency fund: This will bring peace of mind when faced with unexpected events and planning ahead.

3.

Track your accounts receivable

Ensure that your clients meet their payment deadlines. Taking a proactive approach can improve your cash flow.
Encourage your clients to pay earlier by offering them discounts or incentives.

4.

Diversify your sources of income

Explore new opportunities by diversifying your activities. This will mitigate the impact of a downturn in your principal sector.
Collaborate with other businesses: These partnerships will allow to you create combined offers to attract new clients.

5.

Take care of yourself

Add relaxation to your routine and set aside some time to simply rest and find yourself.
Avoid working late: Determine fixed work hours and respect this schedule. Resist the temptation to check your emails before going to bed. Your sleep will improve!

We hope that you’ll feel less stressed once you follow this advice. Burn out can happen so quickly. If you ever feel like you’re at the end of your rope because your debts are piling up, don’t hesitate to call on one of Raymond Chabot’s Licensed Insolvency Trustees. They can help you to find solutions.