On November 19th, the global spotlight shines on the remarkable achievements of women entrepreneurs as they are recognised and celebrated by the Women's Entrepreneurship Day Organisation. This day serves as a tribute to the invaluable contributions of women in business, worldwide.
In Australia, the entrepreneurial landscape is evolving, with 30% of Australian businesses being owned by women. Notably, 45% of Australian women embarking on their entrepreneurial journey were driven by passion, or their business had evolved from a hobby. The fact that a significant 75% of women also self-funded their businesses adds another layer to be admired.
For those currently navigating the entrepreneurial path or contemplating starting their own business venture, adopting savvy financial practices is crucial. Here's some tips to tailored to you:
Separate your finances: Draw a clear line between business and personal expenses by establishing separate banking. Avoid the common pitfall of intertwining these finances, as getting it right from the start will save you valuable time and alleviate stress in the long run.
Know your value: Delegating can be challenging, particularly when you've built something from the ground up. However, understanding your worth and recognising where your time is best spent is important. Outsource tasks that allow you to make a more significant impact on your business and strike a healthier work-life balance. While you might be capable of doing it all, the key lies in finding a balance that enhances both your professional and personal life.
Prioritise future you: It’s easy to get caught up in focusing on all the things you need to do today to build your business but don’t forget future you. Building wealth outside your business is important for diversification and mitigating risks. Surprisingly, fewer than half of female business owners pay themselves superannuation, and many lack a plan for reaching a stage where they can actively contribute to their retirement.
Safeguard yourself: Ensure you and your business is protected by finding the right insurance and adjusting it as needed. Regularly review and update your coverage to align with the evolving needs and growing empire.
Build your A-Team: Create a supportive network that propels you beyond mere surviving, to thriving. Partner with professionals like accountants, financial advisers, business mentors, and coaches who can help you take your business and personal finances to the next level with their guidance and support.
These smart money moves are designed to not only help you thrive in your personal finances but also to support the growth of your dream. They're a blueprint for financial success for those already on their entrepreneurial journey or considering starting.
Let’s not wait until November 19th every year, let’s celebrate and support women entrepreneurs every day!