According to the report, 28 percent of Millennials, between the ages of 18 and 26 are working on the side right now.
And 14.5 percent are using their side hustle to start a new business of their own.
Why are so many young workers branching out into entrepreneurial pursuits?
The obvious answer is they want or need more money than they are earning in their “regular job.”
They also want the freedom and financial independence that comes from working for themselves.
Almost two thirds of Americans rank making a lot of money as a top reason for starting their own businesses.
So if you are working toward starting your own business, you definitely need a plan to manage your cash from the start.
According to this article from Investopedia:
The article goes on to recommend that business owners get professional help with managing their cash. “The complexity of a company’s books goes up with each client and employee, so getting an assist on the bookkeeping can prevent it from becoming a reason not to expand.”
In fact, small business owners need professional help managing their finances that goes far beyond bookkeeping and taxes.
Growing companies fail all the time because they run into a cash flow crunch.
You have to maintain sufficient income and a surplus to grow from being a sole proprietor to whatever size company you want to create. This means you need to be able to make informed decisions about how much you spend, how much you pay yourself, and how much you invest in your business. And as your company grows, you will need to make intelligent choices about growing your operations to support new levels of business.
Over 38 years, I have worked with hundreds of companies of all sizes in more than 60 industries. I have advised business owners in operational accounting and analysis, dynamic cash flow planning, staff efficiency, organizational development, company operations, resource allocation, profit mining, strategic planning, and predictive management.
Having worked with businesses from startups to major corporations, I’ve seen how all of them benefit from proper financial management. I’ve also seen too many small- to medium-sized companies on the ropes, or facing a potentially fatal cash crisis that they didn’t see coming.
That’s what motivated me to create a system to automate financial planning and analysis (FP&A) for small business owners: The Profit Beacon™.
If you are just starting out and aiming to turn your side gig into a full-time business, there are lots of resources available to help you plan and grow. And if you are off the ground and on your way, already employing others in a growing business, consider the systems you need to put in place to keep growing sustainably.
Among the many reasons growing businesses fail, running out of cash is perhaps the most senseless, simply because it can be anticipated and avoided.