7 Best Tips To Help Business Owners Plan Their Finances In 2022
Main Takeaways
As 2022 opens up, it’s a great idea to have your finance planned out.
As much as you can, avoid using your business revenue to fund your lifestyle.
Find out more ways to increase your business revenue with Binance Earn products.
As 2022 opens up, it’s always a good time to make a plan for your business finance.
#DettyDecember had a good run and you’ve had to pay for it with a slow January. Now, it’s time to get back on the grind to make more money in 2022. I bet you’ve thought about how running a business in 2021 was really overwhelming. Well, over 82 percent work more than the standard 40 hours a week.
But, if you are having trouble incorporating financial planning activity into the mix, worry not. We got you covered.
In this article, we share 7 helpful tips that will help business owners plan their finances with ease in 2022.
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1. Separate your personal and business goals
It’s crucial to understand that your business revenue is different from your personal income. So, even as you set goals for 2022, ask yourself,
What goals are you setting for your personal life?
What goals are you setting for your business?
Yes, your business is not a charity funding your lifestyles and goals. Don’t make the mistake of merging their finances. Otherwise, you might find it extremely difficult to tell when your business is making a profit or has broken even.
To plan your business finance for growth in 2022, you need to set strict rules around your business and personal lifestyle. Here’s how:
Pay Yourself First
Most business owners underrate this strategy and their business finance get hurt a great deal. Paying yourself doesn’t give you full license to “chop life”. You should be financially responsible. Cultivate a savings habit and learn to invest part of the money you earn.
So, your money works for you, while you work too.
Go Cashless
Going cashless simply means automating every transaction in your business so you can account for every kobo you spend while doing business. You can’t fully track which expense is personal or for business when cash is involved.
With Binance Pay, you can pay and get paid in crypto from your customers, friends, and family worldwide. Through this, you can easily keep track of your business finance and not meddle in business funds.
2. Eliminate Debts
Debt is not always healthy for business, especially if you grew your business from debt. You continue to pay interests and that can prevent you from reaching your financial goals.
Calculate your total debt and prioritize them. It’s smarter to build a debt repayment plan and spread them over the year so you can clear them up easily without significantly hurting your business cashflow.
That’s why every business owner should plan their finance properly.
3. Analyze your budget
How much did you spend last year to run your business? What was the ROI on some of those expenses? In preparing your finance for 2022, it’s always good to revisit the old budget and track some of the outcomes.
If you meddle in your business finance, then it’s a good call to optimize your spending to get the best value for your money.
4. Build an Emergency Fund
If COVID-19 taught us one thing, it’s always to anticipate the unexpected. As the saying goes, “Problem, e no dey finish”. So, it’s a wise decision to set up an emergency fund and be ready to do what it takes to pull through any dire situation 2022 might bring.
Binance Earn offers Flexible Savings, which enables you to easily deposit your funds, earn interest, and withdraw these funds anytime. Binance Flexible Savings is easy to set up and lets you enjoy rates that are higher than typical traditional savings accounts.
Start building your emergency fund with Binance Earn in case another “yawa go gas” in 2022.
5. Explore Your Funding Options
As a business owner, sometimes funding to run your business comes from your own pockets. So, as a way of bringing in more cashflow, you can always look at taking on a side hustle or exploring more sources of funding for your business, like crypto trading.
Fortunately, you can access Binance loans easily and instantly. These loans allow you to grow your business at the rate you desire and don’t require too much paperwork, unlike traditional loans.
6. Invest in yourself
Always remember that your greatest investment is you. As a business owner, your business grows to the level of your personal development. So always commit to learning new things about your business and finance.
Even if you are doing well, don’t rest on those laurels. Up the bar. Keep holding yourself accountable and grow to be a more capable business owner.
7. Automate your savings and investments
While the year is fresh and you are excited about making saving plans for your financial life, it’s a safe option to set automatic transfers from your account to your savings, or investment account, before “things fall apart” as the year goes on.
Auto-Invest is a great feature that allows you to automate crypto investments and earn passive income seamlessly. You just set it and “forgerrabourrit”.
You can continually run your business while the feature helps you make more money on the go. Simply select the crypto and amount you want to invest in, set a recurring cycle, and let Auto-Invest do the heavy-lifting.
Bonus tips: Crypto savings accounts also offer higher interest rates and capital guarantees, where your capital is shielded from any loss.
Wrapping Up!
We’ve shared some helpful tips to help you plan your finance in 2022. To start automating your business cash flow and enjoy passive income streams, sign up for a free Binance account today.