Running a business is an exhilarating journey filled with opportunities, but it also comes with its fair share of stress-inducing challenges, perhaps none more so than managing finances.
The Stress of Running a Business
Whether you’re a seasoned entrepreneur or just starting out, managing your finances can feel overwhelming, but there’s good news! There are effective and easy stress management tactics that can help you tackle financial challenges and lean into an even better long term position. In accordance with National Stress Awareness Month, and as we head into the new financial year, we thought it was the perfect time to share with you six ways you can manage the stresses of business ownership.
1. Create an easy system for keeping financial records
Adopt an easy system that does all the hard work for you! We recommend Xero for its range of features and ease of use – automate your bank transactions for easy reconciliation, raise invoices quickly, and upload expenses via the mobile app. If you’re yet to start using this simple but powerful software, get in touch. As a Xero certified partner we can get you off on the right track quickly and efficiently.
2. Know your numbers
Limiting financial stress comes from knowing your numbers, and having a clear idea of the amount of profit you need to achieve to have a financially sustainable business AND personal life, will give you peace-of-mind. That way there are no surprises and you don’t feel out of control.
3. Regularly check-in on your cash and time resources
Make sure nothing is going down the drain and wasting your hard-earned cash! Undertake a review of your pricing and clients, and make sure your hard-earned time is being put to good use too.
4. Build an emergency fund
Unexpected expenses and economic downturns can impact your business finances so establishing an emergency fund will give you a financial safety net. Try to set aside a portion of cash regularly until the emergency fund reaches a comfortable level. We recommend that this is approximately three month’s worth of business expenses.
5. Create a healthy work-life balance
Maintaining a healthy work-life balance and prioritising self-care is crucial for managing stress effectively. Make sure that you make time for activities, such as exercise or other hobbies that provide you time out away from the business. Blocking and prioritising this time in your diary is a top tip. And we can not emphasise the importance of a good night’s sleep enough, so consider leaving your phone outside of your bedroom if you’re a midnight scroller or look at your emails as soon as you open your eyes.
6. Make use of professional support
Most importantly, as your accountant we are on hand to take the stress out of managing your finances, turning your complex data into easy-to-understand nuggets of insight. As a Harland client, take advantage of the following perks:
- Quarterly check-ins: Work with your Client Manager to think strategically about your business
- End-of-year Accounts Explainers: Extract valuable insight from your annual accounts by asking for one of our explainer sessions
- In-person workshops: Book onto one of our bespoke, financial empowerment sessions
We think it’s fair to say that whilst financial stress is an inevitable aspect of running a business, it’s not insurmountable and shouldn’t be the norm. By putting some simple strategic measures in place, you can alleviate the strain so that managing finances becomes almost like a game (that’s enjoyable!). So don’t bury your head in the sand. Take control, adopt a proactive approach, and give your business the best chance of success and you the best chance of a good night’s sleep.
April is National Stress Awareness Month (NSAM)
National Stress Awareness Month has been improving mental wellbeing for over 30 years, by increasing our understanding of stress management and highlighting the detrimental impact stress can have on our health. Visit the National Institutes of Health website for more information on National Stress Awareness Month.
