'Solo creative entrepreneurs' are individuals who run their own business and deliver themselves as the primary product or service; for example, authors, experts, artists, consultants, and therapists.

Solo entrepreneurs are passionate, talented, and doggedly independent. They dare to step outside of the traditional 9-5 world to create their career, their way. I've also commonly seen in them a risky trait….. they merge their personal and business lives; their time, space and money.

Let’s drill into the money part.

Related to finances, these creative entrepreneurs often fund their personal and professional lives out of "one pot." The rationale goes something like this: "I'm so lucky to do what I love, and to be paid for it, so I'll just live off the income that I make. There is no difference between my work expenses and my personal life expenses."

So there is one bank account; expenses are paid for through the business credit card- there is no personal credit card; they pay their major expenses with their business income; and there is no personal savings outside of their business savings.

While the simplicity of this approach is tempting, I strongly advise against it. Why? It doesn't allow the business owner to truly see the internal mechanics of their business. As a result, improving, growing, or selling the business becomes impossible.

If you are interested in growing your business you need to know intimately what your business "feeds off of" and what it "produces." In other words you need to know what it takes in, and what it puts out. The owner’s personal expenses are simply not part of this equation.

Additionally, merging personal and professional leaves the owner very vulnerable to losing themselves- by losing their personal financial independence to their business. This comes to bear especially during life's crossroads such as career change, marriage, or divorce.

We must create separation between our business and work lives-- literally and symbolically. The absence of this separation is co-dependence and it is just as dangerous with your business as with a loved one.

Your business is different than you - ENTIRELY.

Your business is its own living, breathing 'being' that requires inputs and outputs—which are tracked, in part, through expenses and revenues.

My clients also wish to have more and fun outside of their businesses; for this they must create that S.P.A.C.E. There needs to be a difference between your personal time and your professional time- between the beginning of a work day and end of a work day, between your living room and your home office.

Here are tips for initiating this separation process:

Every time you pay for an expense, be intentional about whether it is a personal or business expense. Pay for expenses with the appropriate credit card- either personal or business. Pay close attention to your personal expenses (groceries, bills, clothing, vacations). See these as different from your business expenses (marketing, printer, office supplies, staff, business lunches). Have two different budgets and understand how they are different and related.
Pay yourself a salary- choose a set amount of money each month that you automatically transfer to your personal bank account. This can be an owners draw or automatic online bank transfer. What matters is that you realize that you are 'a line item' in your business budget- an expense that your business covers, not the entire business itself. Another benefit of this approach is that you protect and prioritize a specific amount of income for yourself. Consider this excellent self-care.
For those with a home office, do something symbolic when you begin or complete your work day to signify that you are moving out of, or into, personal time. Light a candle, burn some incense, turn on music, go for a walk. Start to create that separation through a routine you can repeat every day.
Hire a good accountant that will help you maximize your earnings while supporting your individualization from your business. If you need a referral, I've got a great one. A sassy female Colorado rancher that has saved more than a handful of lives and futures! :)

There are more tips and distinctions to share, but hopefully this blog will alert those of us who need support to separate our businesses from ourselves!

Love Love- Ana