Create an LLC
When starting a business, you often begin mixing your business life into your personal life. This is a natural reaction to forming a startup and is generally what is needed to happen in order to get a business up and running. However, it is necessary to find ways to create a healthy balance between work and personal life, even when your business is still in its early days of creation. You can do this when you create an LLC for your business. Understandably, you will likely want to continue to coddle your business and it will likely stay on your mind every hour of every day. Just keep in mind that your personal life is just as important as your professional life. Here are a few ways you can practice keeping your personal life separated from your business.
Keep Your Finances Separate
As a business executive, you might have chosen to create an LLC, or other small business setup when starting out. With this, you may have neglected to find a way to keep your personal finances separated from your business expenses. This is absolutely okay, as generally small startups are completely privately funded by you or close acquaintances. If you have not already done so, find a way to open up a separate bank account. This is where you can keep your business finances, including revenue streams and business expenses. This also helps separating from everything in your personal life. There are multiple reasons why this would be a good thing, but the principal benefit comes during tax season. Your business taxes are often managed differently from personal taxes. By having separate accounts, you won’t have to go through and separate personal expenses from business expenses.
Give Yourself a Paycheck
When you create an LLC for your business, this option works even if you are the only employee or if you have multiple employees working for you. Keeping your finances in a separate business account and making yourself a check every two weeks, you will be able to more successfully draw a line between you and your business. It’s important to treat your business checking account as it is: A place to pay business expenses, including payroll expenses.
Expenses and Receipts
In order to fully benefit from keeping your finances between your business and your personal account, you will need to make sure to track your expenses. You can do this by keeping your receipts. In addition, keeping a log of all your receipts is a practice you should keep even without owning a business. However, with owning a business it is even more important to keep a log of all your receipts. This will help you in the event that the IRS may come knocking at your door. Additionally, business expenses are generally tax deductible. Whether you are taking a client out to lunch or purchasing supplies for your office, keep track of it. Keeping track of these expenses could help you during tax season. Be sure to keep a log of all your business and personal expenses.
Educate Your Employees
Assuming you have them, keeping employees educated on proper business functions could help keep your business and personal life separated. As an employer, it is important to get your employees up to speed on day-to-day routines. Not only with just within the business but also the goals your business may have for the future could help you manage expectations you have with your business. Also, this could help you in times when you may need to take a personal day for health or family reasons. Keep personal life separated easier by knowing you can leave your business in capable hands when needed.
Keep Your Time Separate
While on the subject of personal life, keep in mind that even as the boss of your business, you deserve some time for family, health, and relaxation. Give yourself vacation days every year and be sure to keep your weekends free from your business. If you have a habit of checking your phone or email while on your breaks, then consider putting your device away for an extended period of time. Remember, your personal life is just as important as your business. Additionally, as important as it is, you can almost always get back to it when you go back to work. By allowing yourself to get time off from work is essential for separating yourself from your business.
It is understandable that your business is your livelihood, but there is often a line that you will need to place down between you and your business. By following the tips above, you can be well on your way to a more appropriate and friendly way of living.
