It comes as no surprise that work is the most stressful factor in people’s lives. According to research in mental health, one in three people in the UK say that their work life is either very or quite stressful, and 30% say that this stress is a result of financial problems. With the added stress of single-handedly keeping a business afloat that is placed on entrepreneurs, financial pressures can be seemingly insurmountable.
If you are an entrepreneur, it is important not to let financial stress keep you from makinga crucial business decisions to establish your brand and grow your company. However, this is easier said than done. In order to be more stress free, every entrepreneur should develop strategies that reduce financial pressures. By doing so, you will be more efficient and relaxed in carrying out your business strategies, which will benefit your entire company.
Create and control your budget
According to the Office of National Statistics in the UK, 44% of startups in 2011 closed by 2014, and normally the main cause of these failings were due to budgetary finance issues. The first step in taking care of your finances so that this doesn’t happen to your startup is to determine your budget for the year. Start by gathering all of your financial elements, including your credit card information, your bills and invoices, your existing transactions and any outstanding orders or investments.
Once you are aware of all of these elements, you can create a budget that will be a detailed plan of your future costs and spendings. This way, you can control your finances in a more relaxed, stress-free way, as your plan will account for every one of your projected expenses and revenue. Having a budget is also a great way to keep track of your financial goals and organize these incentives in a manner that makes them increasingly attainable.
Seek outside help
Entrepreneurs like to do things autonomously. In some cases, it even becomes an entrepreneur’s credo to build a company entirely on one’s own. But with over 608,100 new companies in 2015 in the UK, you will need to do all that you can to distinguish yourself from competitors, and seeking outside help can help. In fact, seeking outside help is a surefire way to instantly reduce financial stress, as the stress will be transferred directly to someone who is ready and willing to provide assistance.
You may wish to consider hiring a financial planner who can organize your financial strategies, including your investments and retirement plans. Speaking with someone who not associated with your business may give you the outside perspective on finances that you need to reduce your stress surrounding the situation. If you have the time, you can even take classes on basic investing and financial management that may help you achieve success in the long term.
By creating a detailed budget and seeking outside help, entrepreneurs can relieve certain financial pressures and turn instead to focusing on expanding and growing their business.