Every franchise owner’s journey is unique and chances are yours will take several twists and turns along the way. Each time your path to success turns, your finances are there to carry you through and support your efforts. But you cannot know when and where the path will wind, which means it’s imperative to be financially savvy in your franchise today. Here are four financial practices you should not overlook in your franchise.
1. Pay Yourself
You work hard. Your efforts deserve to be compensated. But, in order to compensate yourself fairly and know what to expect both in your business and your personal life, you need to budget your salary.
Look at your projected income and then decide how much you can afford to pay yourself. Then, honor that commitment to yourself and your family’s bank account by making those payments each month. By treating your salary like your employees salaries, you’re able to ensure that you’re spending your money equally on your business and on yourself, which will help you stay on track to be more successful in your franchise and in your personal life.
2. Set a Budget
Don’t let yourself get saddled by debt as you start your franchise. By setting a budget early on, you set the guardrails for when and how you’ll spend your money. Budgeting is easier said than done, though. Many franchise owners fall into the trap of thinking they need the shiniest object being offered on the market. By holding yourself accountable financially and sticking to a budget, you can avoid that temptation to spend more than necessary on every new item that looks appealing and still keep your business humming along nicely.
3. Set Money Aside
In addition to budgeting, you should also be setting money aside for a rainy day—and there will be a rainy day. Things go wrong in business and unexpected costs arise. Without having a savings fund to account for those unexpected hiccups, you could end up buried in credit card debt or worse. Set money aside into a rainy day business fund and only tap into it when absolutely necessary to keep the lights on.
4. Hire Help
It’s tempting to try to do everything on your own—including your finances. Although you want to save money and operate on a shoestring budget, managing the books for your business shouldn’t be something you bootstrap your way through.
By hiring help for areas of your franchise that you’re not familiar with, you can actually save money in the long run by not making costly mistakes. Unless you’re operating an accounting and financial franchise or are an expert in business finances, leaving your money management to the experts is not only a smart move—it’s critical to your longevity and success.
Start Now With Smart Financial Practices
Smart financial practices help you set the foundation for big franchise success over the long run. The better you manage your financial practices today, the more well-suited you are to manage whatever obstacle or opportunity comes your way down the road. Are you taking a proactive stance with your franchise finances?
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.