If you work in one of the four African nations to top international entrepreneurship rankings, you’ll know just how much there is to think about as you get your endeavour off the ground. From hiring staff to developing strategies, there’s so much to do. But one lesser known aspect of setting up a new firm is just how much personal effort you might have to put in, especially in the personal finance arena. If you don’t, you could end up scaring away potential investors and landing yourself and your business in real in trouble.
Falling behind on debt repayments
If you have a mortgage or another significant loan, you need to make sure that you’re able to pay it off before you commit to giving up the security of a paycheck. Falling behind in this crucial area of your personal finances can lead to your home being repossessed, and in some cases you may even find that you have to declare yourself bankrupt. Both for your own peace of mind and for your business’ future, it’s not worth the risk.
Letting your credit rating slip
Strong personal credit ratings are vital when it comes to taking out loans. If your business needs to invest in something but it has to purchase it on credit, such as a van or a car, then a good credit rating is imperative. So if you’re finding yourself searching for ways to boost your score or are wondering how to get a charge off, it’s important to act fast to make sure this important metric reflects well on you.
Failing to prepare
When it comes to starting up a new business, failure to prepare really can cause all sorts of problems – problems which often require some personal financial sacrifice to solve. By not taking the time to save some of your salary before leaving work in order to develop a cash cushion to fall back on, for example, you’re likely to find yourself unable to invest in your business and get it off the ground – or, even worse, unable to pay your own bills. By carrying out sensible financial planning in advance, you’ll be able to prepare yourself well.
Becoming an entrepreneur has a number of challenges. One of the strongest, it seems, can be navigating the journey to strong finances, both business and personal. But by planning ahead and allowing yourself enough time to build up savings, good credit ratings and more, you’ll be able to secure your own personal finances and join the ranks of entrepreneurs in action across the African continent.
