Mixing business and personal money almost ruined my business

I have Sh100,000, Sh20,000, Sh1 million; what business can I start? This is a common question among many people and it is the reason why I started my business. My business works to provide startup consultancy services for entrepreneurs. It also helps turn around struggling businesses in the small and medium category. As a business startup coach, I have learnt that there is more to establishing a successful business than just having capital. 

If I could start my business afresh, I would delegate tasks to the right people. Earlier in business, I always found it hard to trust other people to handle some of the business tasks. This meant that business growth was limited. I couldn’t grow at the rate I should have grown. Over time, I have identified the right people to assign various tasks. Delegation can be a complicated process because it calls for a high level of reliability, accountability and efficiency. 

Capital is necessary to start a business but you cannot wait until you have lots to get started. Start with the little resources you have. 

The secret to building my business has been continuous learning and implementation. Keep acquiring new skills and knowledge. Enroll for online courses around your business, get mentors, read books, watch documentaries, and ask experts. This is the only way you will master your craft and offer value to your customers. In addition to this, you must believe in yourself. That skill that you consider small could be something that a certain group of people desperately need. Find out how you can monetise your skills and knowledge.

Many people want an angel investor to pump money into their business. But no investor will fund a business idea that is just in your head. You have to be doing something so that you can attract the right people and more resources.

I used to mix my personal and business finances when I started. Inevitably, this affected how I handled both my personal and business monies. Business management became difficult as I couldn’t distinguish between business from personal expenses, and cash flows. This mixture can also create an illusion that you have lots of money which you end up spending for personal reasons instead of reinvesting in the business. Always separate your finances. Also, with your personal funds and profits, it is always wiser to have an investment approach over a saving one. Invest your money instead of letting it lie idle at the bank. 

Being an entrepreneur, I would definitely advocate for self-employment. It can be challenging but the benefits are many; you get to earn from doing the things you are passionate about. Being your own boss, you also learn certain skills like problem solving, time management and decision making. You can apply these skills to improve other aspects of your life. However, I also acknowledge that not all of us can be entrepreneurs, and that is okay.

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