Transitioning from a Steady Salary to Entrepreneurial Finances

Going into business amplifies everything you've ever felt about money and brings it to the surface. Especially if you’ve transitioned from a steady monthly salary to managing all aspects of business finances, you know exactly what I mean.

Suddenly, you’re juggling setup costs, pricing strategies, collecting payments, paying suppliers, saving for taxes, ensuring profitability, deciding your salary, planning for the future, managing cash flow, and more.

This transition often involves a steep learning curve.

You move from the predictability of a steady pay check to the uncertainty of fluctuating income - with so many moving parts. It’s a lot to deal with!

 

And it's rare for all the right things seem to line up at the same time from the outset.

The Emotional Rollercoaster of Business Finances

Even if you’re someone who is usually great with spreadsheets, have excelled at negotiating deals, or worked on finance-related topics for others, confronting your own business finances can feel different. Because it’s personal. 

Stirring up all kinds of emotions and anxieties about money—some you might not have even known were there.

For example you might encounter:

• Fear of Insufficiency: Despite meticulous budgeting, you might worry that your earnings won't cover your expenses, leading to stress and sleepless nights.
• Imposter Syndrome: You may question your financial decisions, feeling unqualified to manage your business finances despite your expertise.
• Guilt Over Spending: Investing in your business, such as hiring help or purchasing equipment, might cause guilt, feeling like you should be saving every penny.
• Pressure to Succeed: The weight of financial responsibility can create immense pressure, fearing failure and its impact on your livelihood.
• Emotional Spending: Personal emotions can influence business spending, such as making purchases to alleviate stress or reward yourself.

These feelings can feel quite at odds with your previous perhaps more corporate persona, but know that they are completely normal, valid and part of the entrepreneurial journey.

Embrace Your Emotions and Seek Support

Know there is absolutely nothing wrong with you. The emotional side of this journey has an incredibly strong influence, and it’s okay to feel overwhelmed.

You are capable, and with the right tools, guidance, and mindset, you can master your business finances, make peace with money, and achieve your dreams.

 

Take your time, be kind to yourself, and reach out for support when you need it.

Steps to Make Peace With Money 

1. Give Yourself Grace: Understand that this is a significant transition and it's normal to feel a range of emotions. Be kind and patient with yourself.

2. Help Your Nervous System: Incorporate practices like deep breathing, meditation, or a wk in nature to help manage stress and maintain a calm mindset.

3. Take Your Time: Don’t rush through financial decisions. Take the time to understand your finances and make informed choices.

4. Get Support: Reach out to mentors, join entrepreneurial communities, and consider professional financial advice. Having a support system can make a huge difference.

5. Educate Yourself: Invest time in learning about business finances. There are numerous resources available, from books to online courses, tailored to the transition to entrepreneurship. HAve a browse around here as your first port of call.

6. Create a Financial Plan: Outline your financial goals, budget, and cash flow projections. Having a clear plan can reduce anxiety and provide a roadmap to follow.

7. Use Financial Tools: Leverage financial software and tools to simplify tracking and managing your finances. Tools like Xero can be invaluable.

 Inevitable Learning Moments

Despite your best intentions, you probably won't get everything right the first time.

Perhaps you have a client who pays late, with no contingency and it seriously disrupting your cash flow, or you underestimate the time required for a project and end up feeling like you're working for free. You might even get hit with an unexpected, tax bill.

Entrepreneurship is a learning experience, full of trial and error.

Setbacks are a natural part of the journey but this doesn't stop them being a burden particularly when finance are involved. This is also why having a good support network of likeminded entrepreneurs and access to empathetic professional guidance is invaluable - and one day you will all have a good laugh about it.

 Whatever lies ahead in this journey.... you've got this!