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Managing Your Personal Finances Before Investing In A Franchise/Business
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Managing YourPersonal Finances
Before InvestingIn A Franchise
Guita T. GopalanManaging Director
October 4, 2014 – AFFIWorld Trade Center
Financial Education
What's the worst that could happen?
REPOSSES
SED
What's the worst that could happen?
REMATA
What's the worst that could happen?
SEPARATIO
N
What's the worst that could happen?
FAILURE
What's the worst that could happen?
DISAPPOIN
TMENT
What did they do wrong?
Poor Finance
ManagementPERSONAL → BUSINESS
THE CULPRIT
CO-MINGLING OF FUNDS● Using personal money for
business needs, using business money for personal needs
● IMAGE of a Plane on a run way
- pre-flight checks– All the safety protocols are in place
What To Do?
SECURE YOUR FAMILY'S NEEDS
Bare bones living expenses and financial obligations
Questions To Answer
What happens when there is a financial
emergency?5
● Image of illness● Disability● calamity
Your Answer Should Be:
Emergency Funds
Insurance – especially if you have children and dependents5
Questions To Answer
Can I meet our short term financial obligations?4
Your Answer
YES – GO
NO – you need to prepare more4
Questions To Answer
How much does my family's current lifestyle cost?3
● Rich lifestyle● Modest lifestyle
Do a TAD!
a. Track – your daily, monthly and annual expenses
b. Assess – what is necessary? what can you do without?
c. Decide – If/when needed what do you stop spending on?3
Questions To Answer
How will we finance that lifestyle?2
● Pie chart - allocation
Sources of Income
EarningsSavings2
Questions To Answer
How long will it last without my income?1
Source of Cash
BorrowingsWhen
For What
From Whom1
● IMAGE of a Plane on a run way– Ground staff that needs to have
finances
Keep Business & Personal Finances Separate
● Separate books – financial records
● Don't get money from one for the other
● Pay yourself a salary
Building Wealth
● High Average Principle - image
Building Wealth
Building Wealth
Next Steps
● Put your finances in order, financial protection
– Prioritize the people important to you
● Discuss your plans as a family, make the decision to get into business together.
● Enough to live to fight another day!
Get In Touch!
Guita T. Gopalan
@guitagopalan
Guita T. Gopalan
www.GUITAGOPALAN.COM
