3 Questions To Ask To Tell If Your Business Is Too Closely Tied To Your Personal Life

If you feel as if your life and business are intertwined, that’s probably because they are. 

As a result, it might be difficult to distinguish between the two. Failing to establish clear boundaries between your business and personal lives can have a substantial influence on both.

So, how can you determine whether your personal life is intertwined with your professional life?

Try to answer these three major questions to find out! And if it seems that you are unable to set boundaries, listed are some strategies you can do to address them.

I Tend To Mix Up My Finances – Yes Or No?

As a business owner, it is not uncommon for you to use your personal finances to ensure that every aspect of your business idea is supported. 

On the other hand, you turn to your business’ funds when a personal emergency arises. 

While these instances are not always preventable, it is critical to set parameters that will reduce them.

Experts agree that “mixing personal and business spending is a disaster waiting to happen.

According to the US Chamber of Commerce, just half of the small enterprises survive in the fifth year, and only a quarter survive for 15 years or longer.

Fortunately, these scary figures do not deter Americans from pursuing their entrepreneurial goals. According to SBA estimates, this explains why over 600,000 businesses spring up each year in the U.S..

Half of those small enterprises closed down because of financial difficulties. One example is combining personal and business finances.

Although the most important lesson in “Business 101” is to keep personal and business funds separate, it is also the most overlooked. Keeping them together may result in bookkeeping issues, tax issues, and possibly legal consequences.

Setting boundaries will protect you from the possibly disastrous consequences of combining these finances.

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I Am Always Tired – Yes Or No?

Personal engagement and devotion are undeniably some of the defining characteristics of a successful small business. Having said that, many small business owners have committed to controlling every area of their business.

According to The Alternative Board’s experts, one of the main reasons why small company owners work more than they should is because they believe they are the only ones who can do the task.

You put in long hours. You do not get enough sleep. In most circumstances, you either perform all of the work or keep track of it. Although admirable, this type of working style can lead to fatigue, which then can lead to poor business decisions and have a negative impact on your health.

Making a separation between obsessing over the job and observing how the work is done is an important step to take. 

Remember that when you relax, your creativity pours out. And when you have certain boundaries that enable you to relax and reflect, you have more opportunities to discover the best course of action for your business.

Most importantly, downtime gives you the energy you need to run your business now and for years to come!

I Don’t Have Enough Time For Friends And Family – Yes Or No?

Enriching social ties while running a business does not need to incorporate any of them into the business equation. It also does not imply that they will receive shares in your small business unless they are a co-owner.

It’s easy to put off spending quality time with friends and family to respond to a business concern. However, if this is often the case, you must be prepared to deal with a disappointed significant other.

Having a small business has several problems. And, more often than not, they can be difficult to cope with alone. That said, you cannot underestimate the value of having a strong support system.

If you answered “no” to all of these, you’re on the right track.

And if you answered mostly yes or mostly no, it’s time to take action since you risk jeopardizing your business and personal life.

Here Are Some Tips To Deal With Each Of Them.

Maintain separate accounts

Your small business is initially related to your personal finances. Separating them as you go and build momentum is imperative.

If everything is intertwined, start over and separate them. Establish a separate bank account. Download an excel file of your statements and classify the costs line by line, depending on whether they are for business or personal use. 

Once completed, turn it over to your accountant or bookkeeper for review and adjustments.

Learn to let go

An entrepreneur’s ability to delegate is crucial.

First, admit that you can’t do it all; or at least you cannot do it all well. Examine your list to determine which responsibilities you can delegate to others. Start with things others can do better than you. 

Next, find out if that individual is enthusiastic about the work you intend to delegate. This increases the likelihood of job efficiency and effectiveness. Finally, make time for regular check-ins and give actionable feedback.

At first, this procedure may not make you feel at ease. After all, you want to keep a close eye on your business. Remember, you’re doing this to make room for relaxation and to plan for what will happen in the future.

Make a schedule and be present

Schedule a break and try to be as present as possible during quality time. Apps for scheduling may come in handy too! Furthermore, if it is a non-critical issue, make it a practice not to check your emails or phone while you are with them.

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Why Does It Matter To Create Boundaries?

If selling your business is the best way to keep it going, the defined boundaries will ensure a seamless transition and sale process.

According to experts, having clean and financial documents makes the selling process much easier. On the other hand, excessive financial commingling will be seen as a “red flag.”

While you’re working on the financial side, don’t overlook the importance of empowering your employees.

The duties you provide them will help them get better acquainted with how the business operates. This might be regarded as an advantage for the potential buyer because it may leave little need for training after everyone understands how to carry out the job effectively.

When all roads lead to a business exit,  emotions are bound to run high. A solid support system will assist you in regulating these feelings.

Finally, some thoughts!

Setting boundaries entails sacrifice. However, once you develop them, they will be beneficial to both your business and personal life.