Managing Your Personal Finances Before Investing In A Franchise/Business

1. Managing Your
Personal Finances
Before Investing
In A Franchise
Guita T. Gopalan
Managing Director
October 4, 2014 – AFFI
World Trade Center

2. Financial Education

5. What's the worst that could happen?
REPOSSESSED

6. What's the worst that could happen?
REMATA

7. What's the worst that could happen?
SEPARATION

8. What's the worst that could happen?
FAILURE

9. What's the worst that could happen?
DISAPPOINTMENT

10. What did they do wrong?
Poor
Finance
Management
PERSONAL → BUSINESS

11. THE CULPRIT
CO-MINGLING OF FUNDS
● Using personal money for
business needs, using business
money for personal needs

12. ● IMAGE of a Plane on a run way
- pre-flight checks
– All the safety protocols are in place

13. What To Do?
SECURE YOUR FAMILY'S
NEEDS
Bare bones living expenses
and financial obligations

14. Questions To Answer
emergency? 5
What happens when
there is a financial

15. ● Image of illness
● Disability
● calamity

16. Your Answer Should Be:
Emergency Funds
Insurance
– especially if you have children and
dependents 5

17. Questions To Answer
term financial
obligations? 4
Can I meet our short

19. Your Answer
4
YES – GO
NO – you need to
prepare more

20. Questions To Answer
lifestyle cost? 3
How much does my
family's current

21. ● Rich lifestyle
● Modest lifestyle

23. 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

24. Questions To Answer
How will we finance
2 that lifestyle?

25. ● Pie chart - allocation

26. Sources of Income
Earnings
2 Savings

27. Questions To Answer
How long will it last
1without my income?

29. Source of Cash
When
For What
From Whom 1
Borrowings

30. ● IMAGE of a Plane on a run way
– Ground staff that needs to have
finances

32. Keep Business & Personal
Finances Separate
● Separate books – financial
records
● Don't get money from one
for the other
● Pay yourself a salary

33. Building Wealth
● High Average Principle - image

34. Building Wealth

35. Building Wealth

36. 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!

37. www.colaycofoundation.com
Francisco J. Colayco
info@colaycofoundation.com

38. Get In Touch!
Guita T. Gopalan
@guitagopalan
Guita T. Gopalan
www.GUITAGOPALAN.COM