This famous quote by Benjamin Franklin couldn’t be more true when it comes to business finances.
The statistics are alarming: according to the latest data from the U.S. Bureau of Labor Statistics, about 23.2% of private businesses fail within the first year of operation. After five years, this figure rises to 48%, and after a decade, 65.3% of businesses have closed their doors. One of the main reasons? Financial mismanagement.
At our Tuesday’s Think Tank event, we had the pleasure of welcoming four successful professionals who shared their experiences in financial planning:
Anisa Arra and Loren Rita, two successful lawyers who share not only a business but also a smart approach to finances. They emphasized the critical importance of separating personal income from business income, especially in a complex tax system like Canada’s. “Having a business has forced us to invest in financial knowledge,” said Anisa. “This has not only helped us in business but has also transformed our personal finances.”
Loren added: “As lawyers, we thought we knew everything about business laws. But the reality of running a business taught us how essential financial expertise is.”
Kristiana Musta, a young entrepreneur in the start-up world, went even further. She emphasized the importance of financial education in the early stages of a business. “Having mentors on this journey has been vital,” said Kristiana. “They’ve helped me avoid wrong decisions and be extremely careful with investments.”
Artan Pulti, owner of a very successful company, inspired the audience with his rich experience. He emphasized three key factors that, according to him, lead to sustainable business success: digitalization, sustainability, and impact. “In the digital age, adapting new technologies is essential,” said Artan. He also underlined the importance of delegating responsibilities, adding that “proper delegation not only allows you to focus on the big vision but also empowers your team and fosters innovation.”
The experience of these professionals underscores an important point: financial planning is not just for big businesses. In fact, it’s even more critical for start-ups and small businesses, where every financial decision can have a big impact.
What lessons can we draw from these success stories?
Financial planning may seem daunting at first, but it’s essential for the long-term success of any business. Whether you’re starting a start-up or running an established business, investing in financial planning can be the difference between success and failure.
Let’s not forget another wise saying: “Don’t plan for a year, plan for a decade.”
See you next month! Meanwhile do not forget to join our community!