After leaving the military, some veterans leverage their many skills to start their own businesses. These entrepreneurs often have sound concepts but may struggle with certain aspects of running a business, such as maintaining sustainable financial management strategies.
In the military, budgeting may not much of a concern, and other factors can affect veterans’ ability to effectively manage money when they rejoin civilian life. Additionally, veterans can face problems with getting funding for their ventures. Veterans have the challenge of lower approval ratings, often combined with difficulty building a good credit score.
It isn’t as simple as it seems to create and maintain a budget for a small business, even after getting funding. However, veterans can make the process easier by using simple tips and strategies to help ensure financial health for their businesses and themselves.
Steps to Better Finances for Veteran Business Owners
The first step in business financial management is getting a clear picture of your finances. Set up tracking on important financial information like your credit cards, loans, mortgage, and retirement accounts. Using software designed for budgeting is a great way to stay on track with money management.
Every business owner needs to know where their funds are going. Even though you may need to invest in equipment or other resources for your business, consider these purchases carefully. Will they contribute to revenue? If not, they are usually not a good investment.
Stay on top of investment opportunities and diversify your income. As a business owner, you need to prepare for the lean times and save whenever you can. You will also need to be diligent about paying taxes on time and keeping track of legitimate business expenses.
Financial Management Will Help Determine Business Success
Not all small businesses make it long-term. Veteran entrepreneurs need to be proactive about financial management to succeed.
For more tips, see this infographic from Norwich University.
