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In this episode, we had the pleasure of interviewing Bethany Winston, owner, and Editor-in-Chief of Kidding Around Greenville, as she shares valuable insights on the finances of starting a business.
The Profit-First Approach
Bethany shared valuable insights into her experience and how she has applied financial strategies to ensure her business’s success. She highlighted the book “Profit First” by Mike Michalowicz as a valuable resource. This book discusses transforming a business from a cash-eating monster into a money-making machine.
One key lesson Bethany learned from “Profit First” is the concept of setting up separate bank accounts and allocating income into various categories. This method involves segregating income into different accounts, such as operating expenses, dividends, taxes, and profit. By doing so, entrepreneurs can ensure that they’re not only generating revenue but also consistently turning a profit.
The Importance of Manual Management
Bethany found that a hands-on approach allows her to assess her financial situation regularly and make informed decisions. While there might be automated solutions, the act of personally managing the finances provides a deeper understanding of the business’s financial health.
We discussed the significance of planning for taxes, especially in a small business setting. Setting aside funds for taxes prevents financial stress when tax season arrives. It’s a practice that not only saves money but also eases the burden on the family and ensures the business remains in good financial standing.
The 10, 20, 30, 40 Rule
In addition to Bethany’s insights, I shared a simple financial plan, the “10, 20, 30, 40 Rule,” which encourages entrepreneurs to allocate percentages of their income to different financial categories. This structured approach includes dedicating a portion to giving, savings, housing, and discretionary spending. It’s a framework that can help business owners strike a balance between enjoying their earnings and securing their financial future.
Bethany’s experience and the financial strategies she shared serve as a valuable resource for entrepreneurs and small business owners. Navigating the complexities of business finance requires careful planning, discipline, and the right mindset. By adopting strategies like those discussed in this episode, entrepreneurs can chart a path to financial success in their ventures.
We’ll be interviewing Bethany on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.
Bethany Winston Bio
Bethany Winston is the owner and editor-in-chief of Kidding Around Greenville & Kidding Around Spartanburg. She enjoys exploring parks, discovering local events, and meeting the people who make Greenville an amazing place to live.
Kidding Around Greenville is known for tapping into the heart of Greenville and bringing readers firsthand reviews of the best things to do and see in the Upstate and Southeast region. Readers use Kidding Around® to find things to do, places to visit, and businesses and resources they need, helping them to make wonderful memories with their families.
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