How to Manage your Money as a NEW Entrepreneur (Don’t go BROKE!)

How to Manage your Money as a NEW Entrepreneur (Don’t go BROKE!)


What’s up everyone. Welcome back to my channel,
the number one place for new coaches, content creators and entrepreneurs. In today’s video,
I really want to answer a question that I got over here on my Instagram all about how
to manage money as a new entrepreneur because I completely get it. When you are first starting
out your business, it’s not like you’re necessarily swimming in cash and therefore it’s really
hard to take the advice of investing in your business and investing in yourself when you
have barely any cash to start off with. That’s why if you find yourself in this position,
I want you to keep watching this video because I’m going to share with you some of my strategies
and also some personal advice on how I was able to grow my business from zero to six
figures without having much money to start off with. So if you’re interested in diving deep into
this topic, then keep on watching. Now, if you’re someone who’s watching this video,
you’re trying to start your business up full time, you don’t have another job on this side
or any income coming in. Then the first recommendation that I have for you is to get a part time
job. Now I know that this might sound like a shocker to you, especially since majority
of us, we start our business to not work for anyone else. However, what I learned in my
experience of leaving my nine to five without a backup plan and trying to start my business
from scratch is that not having cashflow coming in can really affect your abilities to make
good decisions in business. Let me explain. When I was first starting my business from
scratch and this youtube channel from scratch as well, I had some money saved up and I thought
that I would be a okay. However, slowly but surely when I saw my bank
account basically draining every single day, it started to make me super uncomfortable
and that uncomfort translated to me making poor decisions in business. I was constantly
cheaping out on essential services that I needed to grow. And by the way, if you want
to learn about what softwares you might need or the softwares that I use to build my business,
make sure you check out this video right here where I cover it all, but basically I was
cheaping out a lot and that was doing a huge disservice to my business. Not only this,
by seeing my bank account draining, I was now operating my business in fear and that’s
definitely not the mindset that you want to go into when you’re trying to build your empire.
If you’re trying to build your business out of fear, then you’re always going to add unnecessary
stress on yourself. That’s why in order to protect your own mental
health and your wellbeing, I highly recommend that you get a part time job that’s super
simple, that doesn’t take too much of your mental energy in order for you to get a steady
paycheck coming in. For example, for me when I was building my business and also building
this channel from scratch, I eventually got a part time job working as a coffee Barista
and even though I was getting compensated minimum wage working, that job allowed me
the flexibility, especially because it was part time for me to go home and work on my
business without thinking about all the things that were happening in that coffee shop. For
example, back when I worked nine to five in corporate, I definitely would not have been
able to build this business because it was a high stress environment and I was constantly
bringing work home versus by taking an entry level minimum wage job, I didn’t have that
type of responsibility. All I did was clock in, clock out and take
a paycheck and that was okay with me. Not only this, by seeing that I was at least getting
money to feed myself, to grab a coffee, to live comfortably and to not stress so much
about money and seeing my bank account dwindle, it gave me a lot of peace of mind and therefore
I was able to operate more confidently. In my business. That’s why I highly recommend
that you drop your ego. You’ve take that sacrifice and you get a part time job to support yourself
as you’re growing this business. Now, obviously everyone’s financial and life situation is
different. You might have kids to feed a mortgage to pay and therefore it’s not that easy to
just get a minimum wage part time job. That’s why if you are someone who already has a full
time job and you can’t necessarily quit and go all in on your business, then at least
to use the portion of the paycheck that you receive from your company to invest back into
your business, really treat that company that you work for currently as your biggest investor. That is definitely something that I highly
recommend if you are someone who has to stay within the nine to five regardless. The bottom
line is is that there are sacrifices that you need to make in order to run your business.
It’s not just peaches and rainbows for me. Did you think that I wanted to work as a coffee
Barista making minimum wage when in fact I was making 65 k a year at my corporate job.
Absolutely not. But it was a sacrifice that I was willing to make in order to free up
mental energy in order to not stress about money and in order for me to stay focused
and building my business with barely any distractions. Now moving onto the next piece of advice that
I have for you, especially when it comes to choosing what you’d like to invest in in your
business is to first ask yourself, can I do this myself? Now I’m going to give you another personal
example. Coming from my journey in business, when I was first starting out, I almost spent
over $2,000 to hire someone to do my branding, my logo, my website, and my photography. And
thankfully, and my boyfriend, who is also an entrepreneur, stopped me from making this
investment. And what he told me was that there are plenty of other things that that money
could be used for other than pretty logos and pretty branding. And guess what? I completely
agree and the reason why I agree with this is because when you’re first starting out,
you don’t really have proof of concept of what you’re building is actually going to
stick. Who’s to say that a year later you might completely change your business direction
or you might not get any traction in your business and therefore you’re going to have
to make a big pivot. Now, only this, you probably don’t have an
audience yet that’s actually going to give you feedback on your positioning, on your
niche, on your personal brand and all of that. You don’t really know yourself yet. That’s
why I highly do not recommend that you invest in pretty branding someone to develop your
website until you actually have proof of concept for your business. That’s why I’m really glad
that I took my boyfriend’s advice because instead of hiring someone to do my website
and do my photography and all of that, I ended up using that money for more important things
like incorporating my business and protecting my business legally. Not only this because
I knew I wasn’t going to invest in having my own website and doing photography. I went
the DIY route, meaning that I downloaded a plugin called elementary, which by the way,
if you’re interested in it, you can definitely check it out in the link below. My website was entirely built just using this
drag and drop plugin and I ended up learning this awesome skill of making websites, not
only this in terms of photography, I ended up actually recruiting my friend Swana who
was also starting up her business and I actually got free surfaces from her in exchange for
a shout out, so I actually was able to develop my website and get the photography for quite
cheap. That’s why when it comes to making investments in your business, really be honest
with yourself. If you’re truly being the most resourceful that you can be. If there’s something
that you can’t do, for example, legally incorporating your business, that is definitely something
that is worth investing in versus if it’s something that you can probably do, like creating
your website, making a logo on Canva, then it’s probably not the best investment. Now,
the next question that you want to ask yourself when you’re on the fence of whether or not
you should invest or buy something is this, does this have the potential to generate me
future income? If the answer is no to that question, then
don’t buy it. This was a question that I constantly had to ask myself to prevent me from going
crazy with online shopping, buy new clothes, buying new shoes, buying new makeup. I always
had to ask myself, if I buy this lipstick, will it actually generate me more income in
the future? And truth be told the answer was no. We’re on the flip side. When I was considering
to buy books, to buy courses, to hire a mentor, I asked myself the same question. Will investing
in this have the potential to generate me more income and most times it was, yes, if
I buy this Facebook ads course, I’m then going to learn how to do Facebook ads and by having
this new skill I have the potential to generate more income that I didn’t have before. These
are definitely considerations that you want to make within your business to make sure
that you are truly making the most out of your money. Now the third question that you want to ask
yourself when you’re thinking of investing or buying things in your business is will
this save me more time? What you need to realize, especially as you grow in your business, is
that your time becomes more and more valuable and if you are able to invest in things that
are going to save you time and actually make your life way more easier and way more efficient
than it is probably something worth investing in. For example, hiring a mentor or buying
courses, although it can seem like a hefty investment in the long run, you are actually
saving yourself so much more time. I’m a firm believer that if I didn’t invest in the courses
that I invested in or hire the mentor that I hired, I probably would not be where I’m
at today. I probably wouldn’t have that necessary clarity and that necessary action step to
actually move forward in business. That’s why investments like these are well
worth it and beyond just courses and mentors. Something as simple as software can also save
you a lot of time as well. Let me give you another example of something that I personally
struggled with when I was starting out my business at some point in my business, I knew
that I wanted to launch a course. I wanted to create a program that was scalable and
I was really debating between using softwares like Kajabi versus doing it the DIY route
and simply downloading a wordpress plugin that could also host the course as well and
through my research. And what I found is that even though downloading a simple free plugin
on wordpress could have probably saved me hundreds of dollars, what I realize is that
by downloading this plugin, I wouldn’t get customer support. I wouldn’t get the necessary
resources that I need in order to actually run my course efficiently and therefore I
would actually be spending way more time dealing with tech issues versus if I actually just
invested in something like Kajabi that would do everything for me. And that was super user friendly. So as you
can see here, obviously I spent more money to invest in the software, but I was also
able to save a lot of headache in the short term and in the longterm as well. Now moving
onto the next tip that I have for you when it comes to saving money and managing money
within your business is to see your expenses as a percentage. Now I’m going to get super
real and honest with you. I used to be the type of girl where my biggest goal was to
buy a Chanel bag. And I remember really clearly in my business made about $40,000 in revenue
already. And I was like, oh my gosh, I have money now I’m going to buy a Chanel bag and
this is where my boyfriend comes in again and stops me. Or at least he gave me a really
good wake up call. He asked me, okay, your Chanel bag currently
costs $10,000 and you’ve made $40,000 in your business. Have you realize that if you buy
this Chanel bag, this actually represents 25% of your total revenue, meaning you’re
going to be spending a quarter of the money that you’ve already earned on this one bag,
and my mind was blown. It shook me to my core and it was definitely the wake up call that
I needed. That’s why I always see my expenses in percentages. Now, to really understand
whether or not it’s truly worth it and to understand the true weight of that purchase,
because what you need to realize is just because you have money, does it mean and makes sense
for you to spend it? Now, this all brings me to the next tip that I have for you when
you’re thinking about managing your money and that is to track your expenses. Now if you’re just starting out in your business
and you don’t have the money to necessarily invest in better software than a highly recommend
you using the app wave wave is a really great platform for you to track your expenses, track
your revenue, and also invoice your clients or your customers. Now eventually you might
want to actually upgrade your software and the next software that I recommend is actually
bench accounting. Benji accounting is a bookkeeping software where you actually work with real
bookkeepers to manage your expenses and track your revenue and they also partner with your
accountant in order to do your year end and all of that. It’s as if you’re basically having
real bookkeepers because you actually have real bookkeepers. Now as you can see with
bench accounting, you can message your bookkeeper whenever you want. You can track your revenue,
track your expenses, and one of my favorite features is actually being able to see everything
in percentages so that I can manage my finances accordingly. So I cannot recommend them enough. And again,
the link to sign up for a free trial is in my description box below. Now on the topic
of working with bookkeepers and all of that. The next tip that I have for you when it comes
to managing your money is to make sure you are seeking out experts. Now obviously if
you’re watching this video and you are at the very beginning of starting your business
and you don’t necessarily have the capital yet to invest in hiring experts, at least
what you can do is to make sure you are self educating. Now whether you choose to seek
out experts, which is what I recommend or you’re at least self-educating by visiting
forums and chatting with other entrepreneurs, you have to understand that there are a lot
of little things within business that not a lot of people talk about like how do you
pay yourself? What is the most tax efficient way to operate
your business? What can you expense or not expense? What platforms or merchants can you
use to have the least transaction fees? There are so many little things. That’s why if you’re
interested in me covering these smaller topics on little hacks and tricks on how you can
actually save money and be more cost efficient in business, make sure you thumbs up this
video. So I know in the meantime I also would love it if you hit that notification bell
because in my next video I’m going to be also talking about money and income. Specifically.
I’m going to share what I’ve learned that has helped me generate a six figure income
by the age of 25 so make sure you smash that notification bell so you don’t miss that video.
Also, while you’re waiting for all of that goodness, make sure you also check out these
two videos that I have here as well. I talk a lot about social media, marketing, entrepreneurship,
and all of that, so make sure you check out these videos here as well. As always, guys,
I appreciate you. I hope you guys have a great day, a great week, and a great life, and I’ll
see you in the next one. Bye guys.

100 thoughts on “How to Manage your Money as a NEW Entrepreneur (Don’t go BROKE!)

  1. Which tip did you guys enjoy the most? Share in the comments below how YOU manage your money so you can fuel your business and make your dreams happen! Btw, waitlist for BOSSGRAM academy, my one and only program is now up! https://vanessalau.mykajabi.com/

  2. Great tips as always. I've also found that working with other new biz owners by trading services is a big help as long as we both talk about the money value of our time and get a close match. Bartering may be out of fashion, but it's extremely helpful when you're just starting out 🙂

  3. Great video Vanessa! I loved the tip on looking at expenses as percentages. This could’ve saved me some money in the past lol But I got it now!! Thank you💛

  4. This is such crucial information! Thank you Vanessa. 🙏 I am thinking more and more of starting a business from home. It has been in the back of my mind for years. Would you recommend trying this if a) I have 4 kids b) I’m also investing my time and energy in my Youtube channel c) I’m also in grad school!?
    Seems kinda crazy to try but it keeps calling me. Oh and grad school is part time for now but will become full time starting next year (that is if my family can put up with it!). Seems like if I am going to move towards this now is better than later in terms of time. But I hesitate. 💕xo

  5. I love all of your videos. Currently, in Vancouver, like where you at tho! Thanks for all of the help always <3

  6. By far saving time is the best tip! I have been in business for myself for over 10 years. Time is the one thing you can never get back. Can always make more money, learn a new skill etc, but can never get back the time…

  7. Omg that’s me who asked the question @The_Leydi!! Thanks Vanessa for answering my question! I just started the video but I know I’m gonna love it and apply it to my life as I venture out on my YOUTUBE career !!!!

  8. Have you ever considered doing podcasts? YouTube is such a bish to convert videos to mp3 so I can re-listen to your content while driving ☺.

  9. Great advice. I worked full time and invested back almost everything for the first year until I was established enough to leave my job.

  10. Great video once again! I recently got my old part time job back after quitting to be a stay at home mom. You can't grow a business without cash flow 💯

  11. You provide valuable information it great 🙂 yes my dream is to become a entrepreneur and own my coaching business. Money is very important that why I will still work in mental health helping people but work on my business in my spare time. Thank you for your video great work from Chris

  12. It would be really nice if you could make a video about how teens could manage business,school and free time. Personally I struggle with this very often. Love your videos btw, you give so much value ❤️

  13. By far the BEST advice about how to quit your full time to start a business. I hated how everyone else had the same advice which was to either “work on your biz until it makes as much as your full time” or “save up 6 months and quit” because both are equally stressful. But your approach makes more sense. Just knowing that we can quit our ft job to get a simple part time job makes it seem less scary to start a business. Thanks so much Vanessa! ♥️

  14. All of these tips are dead set accurate! 👌 Thank you for this video! Loving all of your money videos! 🙌❤️

  15. Love this video! I agree and sometimes need someone to tell me I don’t need to spend money on that just yet. I would love for you to do a video on how to pay yourself and what money to put aside for the business. Thats the only key I have really been missing. I just trying to save and spend carefully

  16. Vanessa! I could save you some time what Gary vee and Jay shetty do is while the do there videos they have another phone or camera recording ther voice so they have the podcast and people can listen while their at the gym or driving!

  17. Money management is so important I'm glad you did this video!!! It can be a struggle to get your head around the numbers especially if your a creative

  18. Your videos are so helpful and informative! I’m so glad I came across your channel! Your personality and knowledge go hand in hand, thanks for sharing your tips and giving us beginners advice 💜

  19. Hey Vanessa , I liked your 1st tip that we should have some partime job while maintaining our YouTube channel to run continuously . So that money will be inflow to run our house and we can get get success in our channel one or other day like you did . And of course consistency is really important for any channel .

  20. Hello! I am on waiting list for august but I havent had any updates yet. Been waiting for nearly 2months for early bird

  21. Is there a link for “wave”? Is it an app? I can’t find it in my App Store. Thank you Vanessa ur videos are always super helpful

  22. I think I'm on the right track! I got a part-time job and I'm working on building my own business but I can't wait to work online full-time so I can travel more!

  23. Storytelling on point. Not many leverages this important segment when giving productive and practical advice. One of the reasons why you actually have a huge audience, on top of all the other things you have in your arsenal, of course. There is a huge difference between running through the bullet points of the subject and encapsulating the subject with the rich experience story. If y'all haven't learned anything from this video, learn this 😉

  24. Excellent video Vanessa! Love the new quality of your video. Congrats on your first Premiere!

    When you were talking about not spending money on branding and then talking about buying a Chanel purse, I was like 😱😡
    I am so glad your boyfriend talked you out of buying that $10,000 purse! 🤗 Marry him!

  25. If you want to quit your job, you have to go all in but be smart about. This are great tips thanks Vanessa, is why i’m working on my business as i still work my full time job. And my job does not required me to take work home.

  26. Again, an other great video Vanessa! Right on time when I was starting to stress over money. You are like a super hero hahaha. Thank you💛

  27. Vanessa your videos are so so helpful! They're so well thought out, organized, and easy to follow along. I've been working on my own business for about a year now (started selling product 7 months ago) so I'm here for ALL the tips I can get! I liked the tip where you said we should be looking at our expenses as a percentage of our income. Smart!!

    In one of your future videos, could you talk about taxes and such? Like when do you charge a customer tax, what do you do with that money, and how to put away money for tax time and how to estimate how much to set aside, etc! (I think you may have touched on this a bit in a previous video) My Shopify automatically calculates the tax for my Canadian customers, doesn't charge my US customers tax, and Amazon doesn't charge any of my customers tax. I haven't figured this out yet!

    P.S. Did you get a new camera/lens? Looks great! 🙂

  28. aww, love the equipment upgrade vanessa! 😍👏🏻 excited for the new set-up though I’ll definitely miss this background …agree on all these points!

  29. Good advice, I'm aspiring to be an author semi-full time and a lot of influencers talk about just going for it and putting in the time, taking a leap… but it's better to be realistic, keeping a part-time is a great idea. SO is seeking professionals, you gotta invest properly in editors that are worth the money etc.

  30. "just because you have money doesnt mean you should spend it " lmao ….my LIFE ; going to hear your voice EVERYTIME i go to buy something i dont need

  31. What if you don't have the money to only take a part time job while you build your business? Like, not having enough money to make ends meet?

  32. I could watch your tips all day, I definitely need to invest in some coaching or a course. Just want to make sure it’s 100% right for me. Thanks for sharing everything as always 👏

  33. I like this video, i am a owner of a business. I created 2 online shops, more than 100 of online programs and build a strong customer base. Now i am making videos like fitness and magic and eating fast. It is so cool to have the freedom. visit me 🙂

  34. Wave seems like a pretty good software. I may need to make the switch! Things are still a bit slow, so I’m still using Excel 😂
    Money management is 🔑 to success in so many areas of life! -Akeiva

  35. Holy ssshhht Vanessa. I'm actually thinking on doing what you did: getting a part time jog to fully work in my channel. I'm quite scared tho to not be capable of organizing my time and monetize my job. Any advice there?
    By the way… your videos look soo good with the new equipment. Congrats 😉

  36. I definitely agree about getting a little job because i quit my job with no plan b and did side hustles like uber eats, flex etc. and it is that constant worry plus business building. Then in between me starting to see results i quit business cold turkey! Now getting back at it. I’m also learned a few skills along the way that i can now charge for. I would say my biggest take away from this is the percentage one I’ll make $100 and then spend $60 on one thing and that is just not worth it when you think about it like that.

  37. Vanessa, I checked your website and it said you don’t work one on one anymore? I’ve been saving up to work with you to help me figure out what I could be doing better!

  38. Vanessa is our godsend mentor who delivers insane value for FREE 🙏
    I'm totally on board with viewing costs and income in terms of percentages, since they represent relative value while straight up numbers are somewhat…arbitrary (i.e. "$100/day" is just a "neat-looking" number)
    Btw you've just convinced me to go back to Elementor.
    Anyway, thanks for another super helpful video!

  39. Wow! Can I just say you are so awesome! I've been following your channel for awhile and I've told everyone about your channel. I'm actually a finance coach and business mentor. I recently started doing my business full time and it is so easy to get shiny object syndrome! But I think it was a great question you asked,"Will this make me money?" This is so true and being reflective about purchases can also help. Like, what was the ROI on this in terms of sales generated or networking built? I love it!

  40. Umm…is it just me or does this boyfriend sound like a keeper! Be a boss, date a boss, build an empire! Love your videos girl keep it up♥️

  41. I would like to add one tip: Have a savings account at your bank for those monts where you have less income. We're all commission-based income entrepeneurs and you will never be able to predict how busy or slow a month will be. Having some money as a backup will severely reduce the stress of not getting enough customers one moment. My personal formula is 3 month's wages + €1000 for unexpected bills like a broken car of new fridge, plus if possible a holiday or fun savings. Never touch the €1000 unless it's an emergency. Only touch the 3 wages when you need to. It's not an easy goal to save up on but after 4 years of runing my business it has definitly saved me more then once because sometimes it just takes longer for new customers to reach you. Stay active in getting new customers, keep saving up and trust me, it'll reduce a lot of stress!

  42. You’re such a charismatic person and your videos are gold. I’m trying to become less dependent on YouTube and your business advice from is just the best 🙂 Thank you! I’ve been binge watching since yesterday ♥️

  43. The timing of this video for me is IMPECCABLE. I am using ANY expenditures I have from my 9-5 cuz I’m currently self-funded to avoid taking out any loans. The “cheapening” or needed items is SO DETRIMENTAL- and a mistake I’ve been making too. I’m finally giving into accounting services and specialist help.

  44. Thank you for EVERYTHING…. I just gave you the biggest shout out on my #wcw IGtv video. You’re Awesome love👍🏾

  45. I love your videos, but when you say things like, "it makes it that much more easier"…it makes you sound uneducated. Drop the more for ier. Just future feedback I really hope you take into consideration!!

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