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Know all the rules if you hire an unpaid internNot all startups in 2008 are toastDress codes keep job attire appropriateSome small businesses have to go home againEmployers urged to help ease job stressNew year is opportunity to refine HR system, policies Retailers compete by being different Employee reviews shouldn't be once-a-year event Small firms need to weigh tax plans carefully Within reason, let workers use Net for personal purposes

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Jorgensen Brooks Group
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Tucson Urban League
CEO/President Trades/Construction
RANCHO RESORT
MAINTANANCE POSITION Mechanical
Komatsu Equipment Co
Resident Field Mechanic

NEW YORK — Personal finances often get a low priority from an entrepreneur trying to build a small business. If the choice is between investing in a new company's future and saving for rainy days or retirement, the business usually wins out.

"I felt like to really make a go of it, I had to put my eggs into my business basket," said Scott Tanner, who started Millennium Media Consulting, an Alexandria, Va.-based marketing business, four years ago.

Tanner did what many new business owners do — he cashed out his savings and dipped into credit cards. So putting money aside for his own future just wasn't part of the equation.

But Tanner said he's aware that many people, including financial advisers, wouldn't recommend that approach. And now, four years later, he is working on his personal balance sheet, paying down debt and recently buying a home.

Michelle Tennant, a co-owner of Wasabi Publicity Inc. in Asheville, N.C., also was more focused on building a business than on setting aside money for the future.

"I think I kept saying to myself, 'some day that will be a priority,'" Tennant said.

Several people, including Tennant's personal-finance-savvy business partner and a financial adviser, helped her see she needed to rethink her priorities. She's now putting aside 10 percent of everything she earns for her own future.

There are several common reasons why many small business owners don't make a similar commitment to their personal finances.

Some are afraid to divert money away from the company, fearing the business will suffer — although even a small amount of money put into a 401(k) account or other investment vehicle will grow exponentially over the years, and that money isn't likely to seal a struggling company's fate.

Many optimistically expect the company to take care of them financially one day. That shortsighted approach could be a big mistake, because a downturn in business — or worse, a complete collapse — could leave an owner with very little in the way of money or assets.

Owners often overlook the fact that the solution to the problem could be in the business itself — creating a retirement account for themselves and their employees. Setting up even the simplest of plans, known as a Simplified Employee Pension, or SEP, could actually help the company, giving the business a tax break and making it more attractive to prospective employees.

There's plenty of help available for small-business owners who decide to start working on their personal finances. Your first stop should probably be your accountant's office; he or she can help you go over your business and be sure you're maximizing your profits. Once that's done, your accountant or a financial adviser can help you determine what's the best way for you to save.