The 4 Most Important Ways for Entrepreneurs to Mitigate Personal Financial Risk - Deepstash

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INC

The 4 Most Important Ways for Entrepreneurs to Mitigate Personal Financial Risk

The 4 Most Important Ways for Entrepreneurs to Mitigate Personal Financial Risk

inc.com

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Establish an LLC (limited liability company) or a Corporation

If you start a sole proprietorship or a partnership, you could be held personally liable for almost anything related to the business; that means you will be responsible for paying any business-related debts you incur and you could be sued by your clients, employees, etc.

If you start an...

New business owners are tempted to fund the business themselves, even if they don't have the savings to cover those expenses. They take out personal loans, max out their credit cards, or incur debt in other ways to get the money they need.

A few minor expenses here and there won't hurt ...

  • Budgeting and frugality: Be smart with your budgeting and try to remain as frugal as possible.
  • An emergency fund: Set aside at least enough money to cover a few months of personal expenses.
  • Tax-advantaged investment vehicles:...

Try to diversify your income streams, both inside the business and on a personal level.

  • Within the business, that could mean selling multiple different types of products and services, monetizing your content or applications in different ways, or even targeting diff...

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These ideas state the money habits to develop that will help in creating and managing a budget.

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