Got the ball rolling about starting your own business but not sure about the money involved? You’re not alone. More than four in ten Americans worry about finance and cash flow when it comes to their new business, based on the market survey by Capital One. Given the numbers, it’s reasonable to question the link between personal finances and business. So… does your personal finance affect funding a business and business opportunities or not?
Personal Finances as your Bedrock
It is no secret that the quality of life you have is greatly determined by the health of your personal finances. When you have bad credit, it affects several aspects of your life like housing, utilities, and even your insurance premiums. So if you’re dabbling into business, make sure that your personal finances are in a good state. Thankfully, there are methods you can try to revitalize your finances as a whole so that you’ll have a better footing to manage your business and enjoy a better quality of living in the meantime.
Your Finances, Business, and Business Opportunities
As it turns out, personal finances play a big part in funding businesses and business opportunities. Over 77% of small business owners use their personal funds to get their small business started, according to the findings of Lendio. If you want to get a loan to fund your business, the state of your personal finances will matter. For example, if you have a low credit score, you may find your loan application turned down. If there’s a business opportunity you’d like to buy into, your personal finances will greatly determine if you will have the capacity to do so.
Personal Financial Literacy and Business Management
Only 40% of business owners consider themselves financially literate, based on the findings of the CPA Practice Advisor. A business requires someone who can read financial statements. That’s to maintain a good record of income and overhead spending. So if you have any plans of maintaining a lucrative business, you need to work on your financial literacy. You can sit down with a financial planner. They can help give you a real picture of the state of your literacy. It also establishes the viability of your future business endeavors.
Conclusion
Whether you like it or not, your personal finances do have a significant impact on your capability to run a business and be involved in interesting business opportunities. Therefore, it would be in your immense self-interest to make sure that your personal finances are well taken care of. Do not hesitate to call in help with your finances so you won’t have to sit and watch another business chance pass you by.
