jobs I earned a $40,000 salary. But with the expense of paying rent, a car note, and basic living costs, I delayed saving,” he says.
In 1999, Wiley took a job in client accounting at GE Capital in Atlanta, and by 2003 he was earning $75,000, including his professorship. When the company asked him to relocate to Alabama, Wiley leaped at the chance. Unfortunately, he was unfulfilled and unchallenged in his new position, and seven months later he quit his job and moved back to Atlanta. For the first six months of 2004, he actively sought consulting work while also serving as a part-time instructor at Shorter College in Atlanta. Grossing about $32,000 during that period, Wiley felt that a better wealth-building strategy would be to establish a company and claim expenses as a tax shelter.
When running your own business, itemizing expenses is crucial. Using an Excel spreadsheet, Wiley examines his finances and adjusts his budget weekly. “My expenses per month range from $3,000 to $3,500. It’s important for me to know this and to be constantly up-to-date with any changes that might occur,” he explains. “I budget what my expected income is going to be and anticipate expenses, so it gives me a guideline.”
Based on his experience as a CPA and entrepreneur, Wiley shares three pieces of advice with those seeking to start their own business and develop financial management skills:
Stick to a strict budget and write down your expenses. You need a budget to have a sense of the financial direction your business is heading. Wiley says you should keep in mind that “losses can work to your advantage. It’s good to outline your expenses and take losses sometimes because you can use some of those losses to offset your personal income.”
Take advantage of peers and people in your inner circle. Don’t be afraid to use strategic alliances or well-established business relationships to help grow your company. Wiley says partnering allows you to approach clients that you might not otherwise be able to pursue on your own.
Network. Network. Network. You must belong to trade associations and attend trade events on a regular basis. “You should network at least twice a week. You should be meeting someone somewhere,” says Wiley, adding that it is also important to develop mentoring relationships with well-established business owners.