6 Smart Financial Moves for Health and Wellness Entrepreneurs

Health and wellness is the epitome of a mainstay industry, with individuals dealing with varying levels of health needs at any given time.

Thanks to its wide-encompassing range, entrepreneurs can find many opportunities to grow a business in this industry.

That said, securing a foothold in this industry can be quite tough. From relentless competition to a need for high-impact marketing efforts to stand out, entrepreneurs have to be informed and savvy to stay ahead.

Besides having a stellar offering, one way to get ahead in this industry is by being smart with your finances. Regardless of your focus within the health or wellness sectors, several crucial strategies exist to help you make the most effective and smartest financial decisions. 

Ready to get more savvy with the way you handle your cash flow? Read on to know these ideal financial moves in more detail.

1. Find Ways to Lessen Administrative Load

If you’re an entrepreneur, you’re most likely well aware of the non-stop nature of your workload. From finding ways to expand your business to dealing with legal concerns, there’s a lot of high-impact decision-making that you’ll have to do on a daily basis.

When the going gets tough, the last thing you’d want to worry about is manually putting in figures into an invoice to your client or worrying about accurately balancing your accounting tracker. Doing these habits can be utter time-wasters, especially when operating a large-scale business.

As such, the best way to handle this is by finding ways to decrease your administrative load. One effective way of doing that is by hiring the right team of financial accountants and tax specialists to do the work for you.

Besides that, leveraging technology is also a potent way to create more time for yourself. For instance, you can automate your loan repayments and saving transfers by setting up a scheduled payment release system through your bank’s app or by asking a bank teller to help you set one up.

This way, you don’t have to pay too much attention to these trivial monthly things and instead focus on the things that matter—such as coming up with new ways to obtain clients or attain increased profits.

2. Be Specific When Goal Planning

Health and wellness entrepreneurs need to be specific with their approach to goal-setting. 

Just like how you’d need to showcase specific features of your health product to attract customers, entrepreneurs need to be clear with how they want to approach their business’s goals as well.

One way to do this is by setting SMART goals. In other words, these goals should be smart, measurable, attainable, realistic and timely.

To lay out an example, instead of simply wanting to sell your product out, make a goal that states how much of your product you should sell at a given time period. This should be realistic and clear—by the numbers as much as possible.

As with all industries, growing your health business requires a careful and systematic approach. Keep that in mind when picking a goal early in your timeline.

3. Separate Personal And Business Bank Accounts

Juggling multiple responsibilities can understandably be challenging. This is especially true if you’re handling finances in just a single bank account.

Having one bank account, for starters, can leave you prone to wrongfully declaring or erroneously inputting transactions that are personal in banking, and vice versa.

This can leave quite a mess in your financial statements, causing you to potentially lose money on wrong tax cuts, missed investor opportunities, and so on.

Furthermore, it can also cause some hardship for you in creating personal and work separation. 

By separating your accounts, you can more decidedly tell which money belongs to which account, which can help you make better and clearer financial decisions overall.

4. Loan Strategically and Clear Off Debt

While the idea of having to repay funds over time can be a chore for some folks, it’s fairly effective in helping grow health businesses faster, for the most part, when done right.

Getting a good loan amount with a reasonable interest rate and payment terms can allow businesses to flourish and capitalize on trends quicker thanks to the quick injection of cash flow. 

Furthermore, the additional increase in capital can also increase the quality of operations surrounding your health startup. 

For instance, a loan can give you enough of a budget to put your pharmaceutical product in a more visible shelf space, allowing your consumers to see your product more quickly, and easing them into a conversion. 

You can also bundle certain debt categories into one running debt, like your transportation costs. This is called getting a novated lease—which is fairly effective in saving you a lot in interest rates over time. Check this novated lease guide for more information.

It’s also essential to avoid taking on additional debt unless absolutely necessary. If you leave yourself with multiple debts running, it’ll only take one late repayment to pull your business into a world of hurt.

5. Record Every Transaction

It’s important to be meticulous in how you track your expenses and purchases. 

If you’re complacent about this, you can become vulnerable to writing erroneous entries into your financial accounts.

This, in turn, can ruin the integrity of your financial statements, compromising your future financial projections and opportunities for getting the attention of angel investors.

As such, it’s important to keep a record of every purchase you make for your health business. 

This way, you can get a clear view of your financial health, which can tremendously help you in making better judgments regarding your health business’s overall direction.

6. Hire Financial Professionals

Let’s face it, it’s easy to feel like you’re on top of all your departments and act like the major decision-maker in all aspects.

And while there’s a trinket of truth in that, it’s essential to know that you’re not going to be the expert in all fields of your industry—especially as you grow and scale your company.

As a health business entrepreneur, you should learn how to delegate and assign tasks to those who specialize in areas outside your expertise. It doesn’t only ease up your workload, it’s also a sound business strategy to propel your health startup to new heights.

Hiring financial professionals, such as tax professionals, accountants, or even a financial executive can help you handle the financial side of things and help you steer your business towards financial stability and growth.

This can help you ensure that your finances are in order and that you’re completely tax-compliant, which is good for the overall direction of the business.