Nov 10, 2019
At what point in your business's lifecycle are you? Are you at the point where reinvesting in your business (increasing employees, equipment, etc.) provides diminishing profit returns? If so, consider creating a financial fortress outside of your business so that you are NOT dependent on your business to supplement your lifestyle.
When you create a business, it's your baby (I get it). It's easy to get sucked into your business and reinvest 100% of every dollar you generate to grow your business. And if you're creating a scalable product or service, maybe that's the right decision (personal finance rules don't apply to entrepreneurs). However, if you hit a wall (cannot scale further) or are at a point where you are paying yourself an amount that you're happy with, consider fortifying your personal finances.
In this podcast episode, I discuss some of the pitfalls of becoming overly dependent on your primary business. Especially businesses where there may be little (or no) market value if you were to sell the business, why it's important to fortify your personal finances sooner rather than later.