Becoming an Entrepreneur

Do you have what it takes to become an entrepreneur? Entrepreneurs have flexibility, they are good at spotting opportunity, and they are motivated to change their community. Their work hours can be long, but running a successful business can be rewarding. While entrepreneurs come from all walks of life and abilities, there are some tips all entrepreneurs should consider to safeguard their business and their families.

Personal Finances

Running a business requires an entrepreneur to wear many hats. This, along with personal responsibilities (like eating, sleeping, and spending time with family), leaves little time to devote to personal finances. Nonetheless, attention to personal finances is important to ensure that the entrepreneur gets paid, spending is under control, and investments are utilized to plan for retirement. Maintaining a low standard of living and limiting or avoiding debt are good habits for every entrepreneurial family.

Protect Assets

Business insurance policies cover a wide variety of entrepreneurial needs. Insuring your business is good for the short term and the long term. The cost to insure depends on the type of business you have (company size, number of employees, property owned, and type of assets). General liability insurance policies help cover property damage and bodily injury claims. Workers’ compensation insurance provides benefits to employees. Commercial property insurance protects buildings, inventory, and equipment from losses. Commercial auto insurance covers the costs of auto collisions for both you and your employees.

Entrepreneurs also have the financial responsibility of protecting their family. Life insurance policies provide financial protection in the event of the owner’s death. Disability insurance provides a source of income in the event the business owner is unable to work due to an illness or injury.

Lifelong Learning

Successful entrepreneurs are continually learning. Equipped with a basic understanding of finances, an entrepreneur can build wealth and accomplish his or her major money goals. Entrepreneurs that are financially literate are more likely to attend college, have more success in their jobs, and maintain higher credit scores. Learning opportunities are endless and, fortunately, the biggest investment to being a lifelong learner is time, not money. Learning is inspiring—seek new ways to do tasks, understand your industry and the wider world to help guide your business decisions, and network with like-minded individuals that can lead you to new ideas.

Philanthropy

Selfless giving without the expectation of a future financial gain can help make life better for you and for other people. By sharing time, talent, or treasures, many entrepreneurs practice true philanthropy. There are many ways to contribute—supporting a charity, working with your local schools and universities, or even teaming up with other businesses to give back to your community. Giving can lead to happiness for yourself while promoting social connection with others.