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A Financial Plan specifically for Entrepreneurs?

MrLiquidityMrLiquidity subscriber Posts: 2
edited September 2008 in Startup Funding
I own an investment advisory firm as well as a couple other small businesses in the coffee industry (big fan of the caffeine bean).  In my entrepreneurial endeavors which include great successes and miserable bankrupting-type failures; I have learned something that seems obvious...Cash truly is King. The three key words for any entrepreneur are Liquidity, Liquidity, Liquidity.  As a result, I am developing a new financial planning concept and would love some feedback from the folks in this forum.  So here is the question: As an entrepreneur, would you rather place your personal financial planning/retirement money in a place where you cannot touch it at all until you reach that magic age of 59 1/2, such as any retirement account, 401(k), SEP IRA, etc.; or would you choose, if you could, to place your money in a place where it is easily accessible?  In other words, would you prefer to have the ability to easily invest in yourself and your own business as you move through your career, or do you view your financial/retirement plan as a "hands off" safety net that should never be used in your own business and should always remain in the stock market, mutual funds, etc.?  If you are not currently investing in a financial plan because you are just getting started...please tell me what you think you would do if you could save money for the future.  Thanks in advance for the feedback!  Good luck with all of your businesses!


  • bunnerbbunnerb subscriber Posts: 1
    I checked out your site. Rock on!! your ideas are fantastic. Liquidity is the number one issue I have with getting my business to the next level. AKA Cash flow!!
    I look forward to seeing what other words of wisdom you have for us. I look forward to doing business with you so that I can have more cash for my business!!
  • MrLiquidityMrLiquidity subscriber Posts: 2
    Thanks for the post, so I assume you prefer to leave money in a liquid place rather than traditional retirement accounts?  What have you been doing with your financial plan thus far?  Not too many details - remember - its a public forum.
  • MrLiquidityMrLiquidity subscriber Posts: 2
    Couldn`t agree more.  While money isn`t required to start or run a business, it sure can help!  I find a lot of entrepreneurs packing money into retirement accounts...which in my opinion is a mistake.  I encourage people to save money in more liquid places so that they can invest in their business if they choose.
    I`m glad to hear you are having great success!  Keep it up.
  • startupadvicestartupadvice subscriber Posts: 0
    As an enterpreneur, I would keep about 4-6 months of liquidity requirement in an easily accessible manner. Balance could be in hands-off long term investemnts. If you have 4-6 months of liquidity available, you should be able to manage and tap into it for urgencies and then replenish during better times. If you keep all in long term, it is difficult to be an enterpreneur.
  • bunnerbbunnerb subscriber Posts: 1
    Chicken before the egg, Rabbit.
    Of course it would be great to have cash on hand before starting my business. But, then, how do I come up with the cash in the first place?  I am 32. Unless my rich uncle dies and leaves me a grip, I am out of luck. Being an entrepreneur has meant that I have not held a traditional job for more than two years at a time. Credit cards, running lean and a wing and a prayer is all I have built my company on.
    Mr. Liquidity; up to now I have been bouncing my ever increasing debt across three or four credit cards with 0% deals. That has got to stop, however, now that "real life" (ie; kids) has taken hold of my once bright future. I have a few meager stocks given to me at graduation, but those sit idly by waiting to hiccup into double digits. And when that day finally comes, I might be able to afford a new monitor for my computer.
    Until then, I guess there is always the lottery.
  • bunnerbbunnerb subscriber Posts: 1
    i agree, but remember that a surprising percentage of companies that go under, regardless of the financial backing, go under because of bad management. Entrepreneurs are great at starting a business, but lousy at the follow-through...  if we don`t bring in a good manager at the right time, all our efforts could be wasted. but, in the meantime, hopefully we can bankroll some of our success into one of mr. liquidity`s financial engines... right mr. l?
  • robertjrobertj subscriber Posts: 0 Member
    This forum depresses me to no end sometimes. Am I the only person in history to start a business with absolutely no money and no help? Financial planning for retirement... are you kidding??
    There are many people who start a business little or no capital and no help. Many that I`ve met seem to revel in the "I can do it all by myself" concept. Some have managed to survive, both personally and in their business.
     I commend you for your spirit and tenacity. However, I wouldn`t advise anyone that this was the best way to go - especially if there are alternatives.
  • startupadvicestartupadvice subscriber Posts: 0
    Folks, my advice would be that do not get into the "start-up" hype untill your own personal finances are in order. Best to take up employment, earn a few years experience and save some money to be able to fund you start-up for 4-6 months. It can be very very challenging and distressing for the family if you start with zero balance for your own needs.
  • MdcnMnMdcnMn subscriber Posts: 10
    I would prefer to invest my monies in a CD (certificat of deposits) at a bank with reasonable rates.  Its money that is "hands-off", yet is available every few months to every year if needed. I don`t have a ton of money either, but I do hold a steady job unitl my ideas/business makes it "big".  I have trained myself to put a portion of my money into a savings account, when it adds up I simply transfer a portion into a CD.  Compound savings is awesome!
  • james82james82 subscriber Posts: 0
    I am looking to invest some money in stocks and bonds but I have only little information about financial details of a company. Any reference for an advisor or planner in Scranton city which can help me in my investment.
    independent financial advisors
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