A fundamental principle that business owners need to understand is this: “Your business is not you, and you are not your business.” Business owners who lead their businesses to success are the ones who separate themselves from the business.
Many people are uncertain about how to separate themselves from their businesses, as we’ve discovered. Whether you are looking to start a new business or expand your existing one, understanding these concepts will help you separate yourself from your business.
- Don’t name your business after yourself.
As explained in the introductory paragraph, in separating your business from yourself, you need to choose a name for your business that is separate from yourself.
This distinction serves as a mental reminder that even though you are the business’s creator, you are not the business. It is challenging to distinguish between you and the company when you have a single identity. Additionally, it creates the impression that you are the only person responsible for the brand. The public can therefore criticize you if they ever have a negative experience with the business.
Give your business a neutral name to be safe, unless you’re managing a personal brand.
- Keep your personal and professional finances separate.
You probably used savings to launch your company, just like many other business owners do. You probably also did not bother to open a separate bank account for your business. However, it’s never a good idea to combine personal and business finances.
Although keeping your personal and business finances in the same account might initially seem simpler, you’ll eventually realize that keeping the two separate will save you time when you need to reconcile your accounts.
If you don’t separate your finances, it becomes harder to track the cash flow of your business. It allows for apathy and bad money management.
Create a separate business bank account. Pay yourself a fixed salary, just like every other employee. Wait until the following payday once the funds are depleted. This will assist in keeping you in check and prevent you from randomly accessing your business’s funds. You’ll find it simple to manage your financial records and taxes. Although you might not be aware of it right now, it also safeguards your private assets in the event of liquidation.
Read this article to find out more about the benefits of keeping your personal and business finances separate.
- Separate Your Space
You might not have the money to rent office space when you first start your business. As a result, your house doubles as your office, but it won’t help if you have work clutter everywhere. Set up a dedicated workspace where you can work efficiently. Avoiding distractions and maintaining organization are made possible by having one.
It might not seem important at first, but over time, your inability to set yourself apart from your business might limit its expansion. It’s challenging enough to operate a business by yourself. By separating your work and personal lives and establishing the necessary boundaries, the journey can be made easier.
- Separate Your Time
While the majority of workers have a 9 to 5 schedule, the majority of business owners have a 5 to 9 schedule. This may give the impression of a driven entrepreneur, but it is the ideal recipe for burnout. You must set aside some time to enjoy life.
Make sure that your business has set working hours with a set start and end time so that you can maintain your sanity. Make every effort to stick to the schedule whether you have a physical office or work from home. That entails no work-related calls or tasks after hours.
Making time for your personal life while operating your business is important because, unlike making money, time cannot be bought back.
You can keep track of time by making a practical to-do list and time audit. You’re not only busy but also productive in this way. Although it’s acceptable to put in an extra hour or two on occasion—even employees do it—it shouldn’t become the norm. You must know when to take a break.
Want to know something else to keep separate from your personal life? Your bookkeeping. Fortunately, Dukka makes bookkeeping quick and easy, allowing you to spend less time on your business accounts and more time with your family and friends.
Dukka is a leading bookkeeping and payments app. We provide solutions for bookkeeping, payments, cash flow management, and access to finance for small businesses in Africa. We are building an OS for commerce for African merchants.
To learn more about what Dukka is doing or to have a general chat, visit Dukka.com.