What does independence mean to you?
For our founding fathers, it was the need for political independence that drove them across an ocean to build their vision. For most kids around sixteen years old, that license is the ultimate in independence. Finance independence that comes from getting a job is a signifier of adulthood. And then there are the entrepreneurs.
They weren’t kidding when they said, “It’s lonely at the top.” Business owners, solopreneurs, entrepreneurs, whatever you call us, we all experience the loneliness of being the head honcho. It’s the price we pay for professional independence.
Yet so many of us have to struggle to remain independent from our businesses, to let our businesses have the room to grow and thrive on their own. There’s a reason business coaches are so busy! Entrepreneurs need help to pull away from their business, they need help to not let it consume them.
Financially speaking, your business is its own entity; it is a unique “person” in the eyes of the IRS, the bank, etc. It even has its own credit. Yet, we treat it as if it is just an extension of our financial selves. It is so easy, need to pay for drinks with a friend? Got a new client the other day, drinks are on me, you say, and hand over the company card. Well, then drinks are on the business… not you. There’s even a word for it: co-mingling. It is best avoided.
So, in honor of Independence Day 2022, take steps to allow your business to be financially independent… from you. Pay yourself your Owner’s pay or paycheck through payroll and leave the business cards at home when you go for drinks!