There is one thing every business person, no matter how small or big, needs to know, and that secret can change the shape of their business and carry them on the wings of success. We’re talking about financial freedom.
When you start your business from scratch, you will dream of massive earnings, a posh office building, and tens of employees. As time passes, this becomes more of a dream for some, but some don’t succumb to the pressure; instead, they break the chains that bind them and try to achieve that goal.
With over 90 % of startups failing by the first 10 years, according to research published by Forbes, it isn’t improbable that your company can fall into the growing pit of failed startups without the proper support and infrastructure. Source: Forbes. The first step to creating your dream business would be setting it up and attaining financial freedom.
What Is Financial Freedom?
Simply put, financial freedom is the freedom from stress and burdens of money related issues. This can be taxes, basic finances, and logistics related to finance and accounting. Being financially free can mean very different things for different companies. However, the core concept of financial freedom remains the same, being independent to make decisions without having to go through hundreds of logs and registers to check if one detail or another is missing.
This does not mean you are free of any monetary responsibility but explains how to continue to be developed and creative with your decisions while also handling your company’s financial logistics.
How Am I Going To Reach Financial Freedom?
When it comes to attaining financial freedom as an individual or establishment, there are several topics to keep in mind, some of the most important include:
- Setting life goals:
For any business, setting goals and tasks that you must achieve before a given deadline will streamline the entire process of attaining financial freedom. Have a required amount that you want in your bank account and a sales goal.
Make sure all this is associated with a particular time-space so as to ensure completion and thereby the development of your business. Keep tabs on your current age and how many financial milestones you have achieved since formation. This will help motivate you to create more milestones and push you to do better and better.
- Planning a budget:
This is a crucial step in the formation of any business. Maintaining a constant budget and sticking by it will ensure that your expenses are tabulated, you have no pending invoices or receipts, and that you aren’t losing money through any means. This is also a great way of keeping your company spendings and total expenses in check.
- Taxes and maintenance:
You will have to stay up to date with the tax laws and income tax rates every single year to ensure that you aren’t breaking any rules and regulations. This will keep your agency operating by the law at all times and hence, reduces the risk of paying tax penalties and other such risks and liabilities across the business.
You must also check revisions in taxes and other legal rules under the field your business operates in so as to modify your company accordingly. This will lead to saving massive amounts of money, which you would be otherwise liable to pay as fines.
- Getting a financial advisor or corporate secretary:
A lot of problems related to financial security can simply be avoided by getting help. When you own a company situated abroad or are in charge of multiple companies, hiring a financial secretary can be a big help. The process of registering and upkeep a company abroad can be quite a hassle, especially if you don’t have business partners from the region to help you.
Thus, Company secretaries play the role of several members by fulfilling the requirements of law bodies in countries like Singapore, where a resident individual is required to set up a business as well as registration with the ACRA. You can save time, logistics, and resources by hiring a secretary to look after company affairs.
Several companies and agencies across Singapore and SEA can help you with such activities, but certain companies outshine all the others. With experience with over 2,500 companies, Sleek is a company you can put your faith in.
- Minimize expenditure:
Having a knowledgeable and hard-working secretary can be a serious pro for your business. From keeping tabs on your current bills and invoices to looking through tabs to see where you can drop your total budget and hence, give you more expendable cash can greatly boost your business. With an increased earning, it’s going to be quite easy for you to regain all your spent capital and even more and invest it back into your business for an added boost.
- Pay off debts and loans:
For most if not all startups, the pressure from a loan is the primary reason for their failure. This is quite understandable as it is the same reason for discomfort in most people’s lives. Thus, your number one goal at all times must be to push past the equilibrium where your expenditure is greater than your income and clear loans at a reasonable pace. Beware, this does not mean focusing all your income on the debts but instead is a warning to try and clear them as fast as possible before they grow out of control.
With there being hundreds of ways to ruin a business and only a few clearing the threshold from being a startup to being a successful company, you might be quite scared to begin your company and might even consider shutting yours down.
But always remember there’s a silver lining to everything. If you make decisions with careful planning and make sacrifices at the right time, you’re putting yourself in a position of success. You will be able to carry your company through the immense turbulence of business into a brighter tomorrow.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.