In this Expert Insight Interview, Laura Adams discusses how to create financial safety nets, delivering tips for individuals and small-business owners to minimize risks and protect hard-earned assets and survive any crisis. Laura Adams is a nationally-recognized personal finance and business expert, author of nine books and audiobooks, including Money Girl’s Smart Moves to Grow Rich and her latest book Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers.
This Expert Insight Interview discusses:
- The most common financial mistakes people make when starting a business
- How to build a “financial runway”
- Why it might be a good idea to keep your day job for a bit longer
Taking Out an Insurance Policy
There certainly seem to be many more people nowadays who are thinking of going out on their own and becoming solopreneurs. As people start to think about going into business on their own, they should focus on some initial financial things to protect themselves from the get-go instead of learning about them the hard way.
One of the main things that Laura sees people overlook about starting a business is thinking about insurance. This is no surprise: people are generally very excited about their business opportunities. That excitement can be a great tool in generating revenue, but having some insurance is always a good idea as you never know what might happen.
Building a Financial Runway
Laura also suggests testing your idea before investing all your savings into it, especially if it is something you plan to do on the side. Think about your emergency savings goals and whether you have enough of a “financial runway” to ensure that you’re OK even if the business doesn’t do as well as you hoped for.
Most people don’t save up enough upfront, so they end up in panic mode when the business begins to eat into their savings.
Keeping Your Day Job
Another thing Laura Adams encourages aspiring entrepreneurs to do is to keep their day jobs as long as possible. If you’re doing something on the side, you might get excited about it and think it is what you want to do for the rest of your life.
However, keeping your day job for just a bit longer gives you the ability to save up a bit more and keep the benefits you have at work. In that case, the additional source of income becomes a type of insurance policy in its own right.
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.