Keep Your Other Financial Goals On Track With These Tips
BRITISH COLUMBIA – “It’s hard getting ahead, especially in today’s world. So I thought, why not go into business for myself, and turn what I love doing into my livelihood…”
These words might sound familiar if you’re a young and newly minted small business owner. In fact, this sentiment is probably the inspiration behind many of the enterprises established in 2020 by Millennials wanting to create their own fulfilling work.
As a lender helping these up-and-coming small business owners, I’m amazed at their ambition and courage. But part of my job is to have important conversations with them on the realities of owning a small business in relation to their other goals (like buying a home or a vehicle, or paying down debt).
Here are the top tips I often find myself providing to young business owners to help set them up for success:
• Considering that income history is critical to any lending application, be mindful of what your business is writing off. Consulting with a tax expert can help ensure the right strategy.
• Always make it a habit to save. It’ll be tempting to funnel every last penny into your business, but putting some aside to cover off personal and business needs is critical.
• Maintain a good credit history. Excessive debt can hinder future plans for both you and your business.
• Make things easier by keeping your business and personal banking under one roof. This can also help inform conversations you have with your banking professional on what the best products and solutions are for you.
• And finally…it’s easy to get tunnel vision and focus solely on your business. But it’s also important to keep an eye on all aspects of your financial health including your protection, planning and savings needs.
I find that many young business owners often don’t know where to start when it comes to assessing what they need financially—and that can lead to inaction. Our quick and simple online quiz can help you immediately gauge your financial health situation. With this kind of knowledge, you’ll be better prepared to make plans and decisions for the benefit of you and your business.
Based in the Comox Valley, Lulu Kanters is a lending expert at Coastal Community. For more, call us at 1.888.741.1010 or visit cccu.ca.