Sean Stein Smith - Common Sense Finance Finance for Individuals and Entrepreneurs

Common Sense Finance

Common Sense Finance

Finance for Individuals and Entrepreneurs

Sean Stein Smith

Common Sense Finance: Finance for Individuals and Entrepreneurs

Copyright Business Expert Press, LLC, 2018.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any meanselectronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 400 words, without the prior permission of the publisher.

First published in 2018 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com

ISBN-13: 978-1-63157-986-8 (paperback)
ISBN-13: 978-1-63157-987-5 (e-book)

Business Expert Press Finance and Financial Management Collection

Collection ISSN: 2331-0049 (print)
Collection ISSN: 2331-0057 (electronic)

Cover and interior design by Exeter Premedia Services Private Ltd., Chennai, India

First edition: 2018

10 9 8 7 6 5 4 3 2 1

Printed in the United States of America.

This book is dedicated to my family, for their patience and support as this book took shape.

This book addresses, from a conversational and hands-on perspective, the implications of finance, financial literacy, and the importance of understanding finance for both individuals and entrepreneurs. Finance and understanding financial matters are the ones that drive the decision-making process for businesses, large and small; but it is especially important for small business owners as they attempt to build, expand, and develop their businesses. As a CPA, member of the AICPA Financial Literacy Commission, and a weekly columnist for Inc., it is clear that personal finance and financial literacy is something that drives decisions and plans for both individuals and organizations. Better informed people make better decisions. This book addresses the multitude of financial issues faced by individuals, entrepreneurs, and small business owners. Incorporating technology trends into this text, resources, links, and additional information are integrated throughout this text.

entrepreneurs, entrepreneurship, financial literacy, personal finance, small business

I would like to thank Dr Thomas Schaefer, whose expertise and guidance have helped me for years. His review and analysis of this book, including the questions and suggestions made therein, is very much appreciated and resulted in a much-improved final product.

In a world that is increasingly volatile, competitive, and globalized, the importance of having access to information, and using that information, is essential. Financial concerns are important for national governments, large organizations, and business executives; media outlets are blanketed by headlines with financial ramifications. Finance, it appears, is everywhere and impacts virtually every aspect of both commercial life (business), as well as the lives of individuals. With so much information available, almost all of it available for free, there are very few reasons to not use it to improve your personal financial situation. People count calories, track steps, and exercise consistently; financial fitness and health are not much different. Like anything else, however, financial education, financial literacy, and financial health are ongoing processes that require consistent effort and constant tweaking.

Additionally, and arguably more important as an increasing percentage of the population engages in side hustles or other entrepreneurial activities, a foundational understanding of business and business finance is increasingly important. Understanding what finance means for an enterprise, how to leverage financial information, and how to make the best use of organizational information appear to be trends that will represent competitive advantages moving forward. Resources and information available to business include the financial and physical capital that have always been available. Moving forward, however, and reflected in the changing business landscape, it appears to be true that data, information, and making effective use of this information form a resource to be developed and used by entrepreneurs. This in turn, brings us to the core reasons as to why this book exists, and more importantly, what I hope you will be able to get from reading it.

The reason behind this book, and why I wrote it to begin with, is to help people access the volumes of information available to them related to personal finance. As a CPA, advocate for financial literacy, member of the American Institute of Certified Public Accountants (AICPA) National Commission on Financial Literacy, and someone widely quoted and published about financial literacy, my mission is to help make you better informed decisions. A driving force behind this book, which covers the topics of personal finance, financial literacy, and finance for small to medium size businesses, is to help entrepreneurs and go-getters realize just how important money management is to a business. The unfortunate truth is that many people are dissatisfied with their financial life, and most new businesses fail due to a lack of adequate startup capital or ongoing cash flow issues. What makes the book unique, and will help it add value to you, both as an individual and budding entrepreneur, is that I am focused on practical solutions instead of theoretical conversations. Breaking down complex topics, outlining some best practices, and discussing what I have seen as a CPA provide you with the information and context you need to make better decisions. So, lets roll up our sleeves and get to work.

Better informed people make better decisions.

How many times have you been in a situation and thought to yourself that if only you had planned ahead, or done a little more work in advance, that you would be in better shape now? That same concept and mindset you have at that moment should never be one that you associate with your personal finances or financial planning. It does not really matter if you are thinking about that credit card penalty you had to pay, or the fact that you have not checked just how much you are paying for web-hosting, the effect on your finances is negative. This stuff might not seem as exciting as watching Bellator MMA, NCIS, The Flash, planning your next trip to Vegas, or reading up on the upcoming Deadpool movie (this time with Wolverine?), but it really is as excitingheres why. If you do not have a financial plan together, or at least an idea of how you want to manage and plan out your personal finances, how can you hope to do the things you want to do?

I dont have to remind you what happens when people are not ready for unexpected financial events or crises; if you are old enough to be reading this book you are old enough to remember the crashes of 2008, 2000, and maybe even the ones before that. Bad things are going to happen in the economy, the job market, and in your personal financial life, and you have to be able to deal with them as they happen. Vacations, movies, and going to World Series are all great things that add some variety to life and make it fun, but you absolutely must have the financial foundation in place in order to enjoy these things. The same mindset can, and should be, applied to your entrepreneurial activities. For every runaway success and business headlines that we read or hear about, there are numerous organizations that fail to gain traction, and then fail altogether. A leading cause of small or new business failure is a lack of financial capital or planninghopefully this book can provide you with some tools to keep your business from suffering such an unfortunate fate.