ArashadMadhani Shares: 4 Tips For Young Entrepreneurs On Managing Their Wealth
by Arina Smith Uncategorized 14 September 2018
Arshad Madhani is a digital marketing expert with over 10 years of experience, giving him an extensive knowledge of a constantly evolving industry. His work as a consultant has also allowed him to see what young entrepreneurs do with wealth once their business starts to take off. Unfortunately, many don’t manage it as well as they should.
Madhani recently shared his four top tips for young entrepreneurs coming into money for the first time.
1. Hire an Accountant and Financial Advisor
It can be tempting to try to save a little money by managing it yourself, but you should really hire a professional accountant and financial advisor. Financial markets are complex, so an investment that seems like a no-brainer could turn south if you don’t know what you are doing. A financial professional can advise you whenever you think you’ve discovered a “can’t miss” opportunity, ensuring that you do not do anything that you come to regret.
2. Live Within Your Means
You might want to spend your newfound income as soon as it comes in, but it’s important to live within your means. You do not want to rack up a lot of debt while business is good only to be left without a recourse if things take a turn for the worse. That said, you can splurge every now and then. A trip can be a great way to enjoy your success while also building relationships that ultimately benefit your business.
It’s also important to clearly differentiate between your business revenues and personal income. If you cut staff while driving around in a brand new Lexus, your company morale will suffer. You can also siphon funds that your company ends up needing later, potentially compromising your future ability to conduct business.
3. Don’t Be Afraid to Invest More Money Into Your Company
Success is good, but a common saying in the business world says that if you’re not growing, you’re contracting. While your business revenues can ideally fund all of your expenses plus any new investments you want to make, it is often necessary to put money in after your initial investment to reach your company’s full potential. There is absolutely nothing wrong with that, so don’t be afraid to splurge in this area if you can afford to.
4. Consider Donating to Charity
Finally, donating money to charity is a great way to give back to the local community that has allowed you to succeed. You can pick a cause with a lot of personal meaning to you so that you feel warm and fuzzy inside.
It might seem counter-intuitive, but charitable donations can also help your business grow. A press release detailing your charitable efforts can be a great way to get your name out there with some positive PR. Champions of the cause you chose may also be more likely to patronize you in the future once your good deeds come to light. Most charitable deductions are also tax-deductible, so make sure to share your exploits with your accountant to reap the financial benefits.
Get More Entrepreneurial Tips from Arshad:
If you’re interested in more business insights from Madhani, you can follow his social media accounts on platforms such as LinkedIn, Twitter, and Facebook. He also maintains a personal blog (ArshadMadhani.com) where he shares more in-depth thoughts with his readers.