How to Achieve Financial Stability As a Business Owner
Entrepreneurship: the word itself brings up visions of massive success and a life of luxury as a result of running and owning a business. Despite this common end goal, the act of becoming an entrepreneur requires a lot of work that may or may not be fruitful and often requires quite a bit of struggle and personal sacrifice. If you have come across this article, you can most likely relate to this situation and are probably looking for ways to eliminate some of the financial instability that comes with this career choice. While you cannot completely ensure a stable income, you can set yourself up for success so that you don’t have to deal with as much of the income fluctuation that you are currently dealing with. Here are some of the best tips to achieve stability so that you can keep your income flowing more steadily.
Set Up Financial Goals (Daily, Weekly, and Monthly)
When I first started freelancing, I didn’t have any income goals in mind. I was working and picking up work simply for the sake of advancing my career. While this is one important aspect of running a business, your business and your lifestyle cannot be sustained if the money isn’t coming in. Regardless of where you are in your current business journey, take a second to sit down and to figure out what your income needs to be in order to for you to continue to afford your current lifestyle. Take into account all of your expenses and set up a budget that reflects all solid and potential expenses. Then, figure out how much money you should be making to cover all of these expenses as well as any unforeseen expenses. After that, break that number down into a daily and weekly goal so that you can carefully monitor your progress as you work towards those goals.
Seek Out the Clients That Can Help You Meet Those Goals
As a business owner, you need to be asking for what you are worth based on what value you provide to your customers or clients. You shouldn’t be tackling work that doesn’t pay well or serve you in the long run. You should only be seeking clients who pay your rates and who can help you reach both your professional and your business goals. When you settle for less, you lose out on both profit and progress. Keep this in mind when reaching out to new clients or accepting offers from interested clients and companies.
Provide Value to Encourage Repeat Business and Never Let the Client Pool Empty
A lot of people think that the process of acquiring clients is the most important and while you must know how to properly draw in clients, the ultimate goal is to retain those customers to ensure that you have money constantly coming in and to also show other clients that you are able to consistently provide value to others. In addition to making sure that your hook repeat clients rather than doing single jobs and attempting to find more afterward, you want to make sure that you have a consistent pool of existing and potential clients. You should never be at a point where you are not talking to or bringing on new clients. This is necessary as a client may end up not having work for you at any given moment and if this occurs with many clients at the same time, you will be out of luck and money.
Pursue Multiple Income Sources Rather than Relying on One Type of Source
As a freelance writer, my income stems from (obviously) writing. However, that does not mean that I do not have multiple sources. For example, some of my income comes from part-time jobs, some of it comes from random briefs, some of it comes from various platforms or content mills, and some of it comes from one-time sources. I do not rely on one type of source but rather pull from various sources in order to make sure that I will always be able to turn to something in order to make money. Regardless of what it is you do, you should make sure that you have multiple streams to rely on so that you always have a backup plan and a guarantee.
In the beginning stages of entrepreneurship, supporting yourself financially can be difficult. If you are currently struggling and are trying to prosper rather than survive, use the tips listed above and let me know some more down in the comment section that helped you to overcome your financial struggles as a business owner!