Managing your personal money well alludes to the best of us. To confuse the situation, the rules for business finances differ from personal. With so many rules, so many variables, the possibility for confusion is significant. The following outlines simple rules to ensure clear separation: Create a separate bank account for your business, that’s independent of your personal account. Separate credit and debit cards for your business, to easily trace business transactions. This allows you to check every purchase and sale separately from your personal fund.
Separating hours of work and play
The moment you start working for yourself becomes the moment you suffer from too much freedom. There’s a reason why conventional businesses have formal and structured business hours. You understand how much time you have in the day/week/month, and you can plan your time. You can indicate to your family and friends when you’re working and when you aren’t. The draw ups boundaries for your unique working style.
Separating physical working environment — especially working from home
For most of us, becoming an entrepreneur starts in the home. It can result in the feeling like you never leave work. You can need it more, as your work can be incredibly challenging and high stress. A room, desk, or section of a room that is for working, and working only. For example, the desk you use is only for work. Despite what anyone says, don’t invest in office space until your business can support it.
Separating personal and business needs
As an entrepreneur, it’s challenging to make decisions. We can view them as one and the same, which ultimately compromises our ability to make a decision for the business. Separation is necessary for them both to thrive. Separating your life sounds easier said than done. Yet, it’s equally the most important. Here is how to approach it in your business:
Don’t ask your loved ones for help with your business decisions.
Separation is something that takes time to master. The most obvious is that the two can crumble, both simultaneously and independently. But on a more practical note, you can end up with this hybrid relationship between your business and your personal life. Where you can’t take days off but you feel tired, unrested and unable to work effectively. And trust me, there will be no separation anxiety with this.
Originally Inspired by Ellen McReaThe Essential Skill Every Entrepreneur Needs, But Rarely Masters — Separation